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GST Collection Crosses INR1L cr for the Second Consecutive Month

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 3, 2020 5:40 AM 2 min read
Editorial

GST collection crosses INR1L cr in December 2019. 

 

TAXES

GST collection crosses INR1L cr for the second consecutive month.

Two is Company: Gross Goods and Services Tax (GST) collections crossed the ₹1L cr benchmark for the second consecutive month in December 2019.

 

A 9% year-on-year jump, the gross GST revenue collected in the month of December, 2019 rose to ₹1,03,184cr. However, it was marginally lower than the ₹1,03,492cr collected in November. HT

Indian startups push the government to define permanent establishment

An Establishment is Forever: Startups in India push the government to define permanent establishment, in turn giving them a level playing field with global tech giants, which enjoy a tax advantage.

 

Permanent establishment is a concept in taxation that determines which jurisdiction has the right to tax a company’s revenue. The global tech giants have structured investment arms through a maze of subsidiaries held outside India in jurisdictions such as Singapore, Mauritius and Ireland, which means they pay about 10% tax on revenues, as per this report. Meanwhile, most Indian companies have to pay 35% tax. This, not only results in loss of direct tax for India, but also has a negative impact on local, home grown companies from a competition standpoint.

 

The companies said any global tech giant that has a million users, 100 paying customers or annual revenue of ₹10cr locally should be considered as having a permanent establishment in India and taxed on par with domestic companies.

FIN.

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