GST collection crosses INR1L cr in December 2019.
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
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.
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