Digital Economy Taxation - Deconstructing Equalization Levy and GST from an Indian tax standpoint
Though electronic commerce has created immense opportunities for the trade, it has given rise to various challenges with respect to levy of tax on cross border digital transactions. It was important to arrive at a common solution for taxing digital economy by all the countries involved and thus avoiding global tax wars.In this backdrop, to arrive at a practical but common solution acceptable to all countries involved, the OECD and G20 countries together introduced BEPS Action Plans with the sole intention of curbing tax evasion and double non taxation. Action Plan I of BEPS deals with addressing tax challenges arising from Digital Economy in which three options (namely, SEP, WHT on certain digital transactions and EL) were discussed for countering tax evasion by digital economy companies. However, none of these options were eventually recommended by Action Plan I. Despite this, it was mutually agreed that until such time a multilateral solution acceptable to all is arrived at by the OECD, the stakeholders involved could introduce these options as interim/ temporary measures to counter tax leakage. Accordingly, several countries have introduced one or more of these options under the nomenclature DST.Through this article, we have made a humble attempt in decoding India’s bid to plug the revenue leakage caused by virtue of several transactions becoming digital. In this regard we will discuss the concept of Equalization Levy from an Indian tax standpoint while comprehending the understanding of OECD on this aspect, as also the introduction of tax on OIDAR in India’s indirect tax regime to capture digital transactions within its tax net. We have also made an attempt to decode EL vis-à-vis OIDAR so that the NR companies operating in digital economy are better equipped with what they are dealing with to avoid any altercation with the IRA
Year of publication: |
[2021]
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Authors: | Naik, Amar ; Shah, Rushil |
Publisher: |
[S.l.] : SSRN |
Subject: | Indien | India | Umsatzsteuer | Sales tax | Steuerreform | Tax reform | Steuer | Tax | Electronic Commerce | E-commerce | Steuersystem | Tax system |
Saved in:
freely available
Extent: | 1 Online-Ressource (26 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 3, 2020 erstellt |
Other identifiers: | 10.2139/ssrn.3739913 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013247833
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