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Indian government introduces provision to prepare for global digital tax

Feb, 07, 2023 Hi-network.com

As a preparatory measure toward digital taxation, India has introduced a provisionmaking foreign platforms that streams, advertises, or sells goods to an Indian IP address taxable in the country. The purpose of this provision is to make India ready to implement the tax once the Organisation for Economic Cooperation and Development (OECD) digital tax framework, currently under discussion, comes into effect. The Finance Bill proposes changes to the income tax Actto add new source rules. This will include the income of non-residents from advertisements which targets a customer who resides in India or a customer who accesses the advertisement through IP address located in India. Also, the bill includes income from the sale of goods and services using data collected from a person who resides in India or from a person who uses IP address located in India.
 

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