wordpress blog stats
Connect with us

Hi, what are you looking for?

UPDATE: Google absorbs 15% service tax in India; plans to roll out tax-inclusive pricing

Google's Play Store is absorbing the 15% digital service tax that the Indian government started requiring foreign businesses to pay from December last year. The company, which runs the Play Store business out of an offshore entity in Ireland, has the infrastructure to support tax-inclusive pricing on its billing platform; this is supported in 37 countries, including Australia, Japan, Italy, Belgium, and the UK. Three months after the digital service tax came into force in India, Google has yet to enable tax-inclusive pricing for India; it is instead manually paying the tax without showing the amount in Play Store purchase receipts. In a statement to MediaNama, Google clarified that it "has been paying the taxes since 1Dec 2016 [sic] and this will continue till it introduces the changes in this Play store invoices". Google isn't using its tax-inclusive pricing system to take the responsibility of taxing individual purchases on the Play Store. Apps, Books, Films, and Music purchases from the Play Store all show a tax of "₹0.00" in Play Store purchase receipts. Google had earlier said that this tax "will be applicable" on individual Play Store purchases. The Play Store's merchant guidelines currently state that app developers around the world are responsible for determining whether they are responsible for filing taxes in India, and for actually going through the process of filing them. Google has refuted this guideline in its response to MediaNama. The 15% digital tax In November, the Indian government announced that companies outside India offering digital services…

Please subscribe/login to read the full story.
Written By

I cover the digital content ecosystem and telecom for MediaNama.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

News

Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...

News

The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ