{"id":1292589,"date":"2025-03-27T09:03:47","date_gmt":"2025-03-27T03:33:47","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1292589"},"modified":"2025-03-27T09:04:22","modified_gmt":"2025-03-27T03:34:22","slug":"indian-can-stop-google-tax-on-us-companies-before-april-1st","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/","title":{"rendered":"Indian Can Stop &#8216;Google Tax&#8217; On US Companies Before April 1st"},"content":{"rendered":"\n<p>India has announced its decision to remove the 6% equalisation levy, commonly known as the &#8220;Google tax,&#8221; on online advertisement services from April 1, 2025. The move is seen as a strategic effort to mitigate trade tensions with the US, particularly amidst ongoing negotiations. This decision is part of 59 amendments proposed in the Finance Bill by Finance Minister Nirmala Sitharaman.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg\" alt=\"Indian Can Stop 'Google Tax' On US Companies Before April 1st\" class=\"wp-image-1292600\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1-300x169.jpg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1-768x432.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Why is the Equalisation Levy Being Scrapped?<\/h3>\n\n\n\n<p>The equalisation levy was introduced in 2016 to tax foreign digital companies that earn revenue from Indian users without having a physical presence in the country. However, US President Donald Trump has<a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/policy\/india-proposes-to-remove-6-google-tax-from-april-1-a-day-before-trumps-retaliatory-tariffs-come-into-effect\/articleshow\/119440381.cms?from=mdr\"> threatened retaliatory tariffs<\/a> on countries imposing digital taxes on US tech giants such as Google and Meta. By removing the levy, India aims to avert these tariffs and smoothen trade discussions.<\/p>\n\n\n\n<p>Senior advisor at EY, Sudhir Kapadia, supported this move, emphasizing that the levy\u2019s contribution to the exchequer was not substantial. Additionally, its removal signals India\u2019s willingness to engage constructively with the US on trade policies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Impact on Trade Relations<\/h3>\n\n\n\n<p>India and the US are currently negotiating a trade agreement, with the removal of the levy serving as a gesture of goodwill. Similar moves are also being considered by other nations, including the UK, to avoid retaliatory actions by the US.<\/p>\n\n\n\n<p>According to Nangia Andersen LLP\u2019s Vishwas Panjiar, the removal of the tax will provide certainty for businesses while addressing concerns about the unilateral nature of the levy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Historical Context of the Equalisation Levy<\/h3>\n\n\n\n<p>The levy initially targeted digital advertisements and was later expanded in 2020 to cover ecommerce transactions. A 2% tax was imposed on foreign ecommerce companies conducting business worth over Rs 2 crore annually in India. However, following a global tax agreement, the 2% levy was withdrawn last August. The recent decision to eliminate the 6% levy aligns with this trend.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Other Key Amendments in the Finance Bill<\/h3>\n\n\n\n<p>Apart from the levy removal, the Finance Bill proposes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Facilitating Offshore Fund Relocation:<\/strong> Amendments to Section 9A will remove the term \u201cindirectly\u201d in the clause restricting Indian resident participation in offshore funds. This will encourage offshore funds to relocate to India.<\/li>\n\n\n\n<li><strong>Clarification on Search and Seizure:<\/strong> The bill introduces the term \u201ctotal undisclosed income\u201d to clarify the objective of search and seizure proceedings, ensuring only undisclosed income is taxed.<\/li>\n\n\n\n<li><strong>Return Processing Adjustments:<\/strong> The Income Tax Department will have the authority to make adjustments while processing returns.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p>India\u2019s decision to eliminate the equalisation levy reflects a strategic effort to strengthen trade relations with the US and align with global tax norms. Alongside other financial reforms, this move is expected to create a more predictable and business-friendly tax environment, encouraging investments and offshore fund relocations. The Finance Bill\u2019s amendments represent a proactive approach to managing international trade dynamics and fostering economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India has announced its decision to remove the 6% equalisation levy, commonly known as the &#8220;Google tax,&#8221; on online advertisement services from April 1, 2025. The move is seen as a strategic effort to mitigate trade tensions with the US, particularly amidst ongoing negotiations. This decision is part of 59 amendments proposed in the Finance [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1292600,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[7390],"class_list":["post-1292589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-google-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Indian Can Stop &#039;Google Tax&#039; On US Companies Before April 1st - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indian Can Stop &#039;Google Tax&#039; On US Companies Before April 1st - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"India has announced its decision to remove the 6% equalisation levy, commonly known as the &#8220;Google tax,&#8221; on online advertisement services from April 1, 2025. The move is seen as a strategic effort to mitigate trade tensions with the US, particularly amidst ongoing negotiations. This decision is part of 59 amendments proposed in the Finance [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-27T03:33:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-27T03:34:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mohul Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohul Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/\",\"url\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/\",\"name\":\"Indian Can Stop 'Google Tax' On US Companies Before April 1st - Trak.in - Indian Business of Tech, Mobile &amp; Startups\",\"isPartOf\":{\"@id\":\"https:\/\/trak.in\/stories\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg\",\"datePublished\":\"2025-03-27T03:33:47+00:00\",\"dateModified\":\"2025-03-27T03:34:22+00:00\",\"author\":{\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7\"},\"breadcrumb\":{\"@id\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#primaryimage\",\"url\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg\",\"contentUrl\":\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg\",\"width\":1024,\"height\":576},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/trak.in\/stories\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Indian Can Stop &#8216;Google Tax&#8217; On US Companies Before April 1st\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/trak.in\/stories\/#website\",\"url\":\"https:\/\/trak.in\/stories\/\",\"name\":\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\",\"description\":\"Trak.in is a popular Indian Business, Technology, Mobile &amp; Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups &amp; Social Media Space\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/trak.in\/stories\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7\",\"name\":\"Mohul Ghosh\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g\",\"caption\":\"Mohul Ghosh\"},\"url\":\"https:\/\/trak.in\/stories\/author\/mohul-ghosh\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Indian Can Stop 'Google Tax' On US Companies Before April 1st - Trak.in - Indian Business of Tech, Mobile &amp; Startups","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/","og_locale":"en_US","og_type":"article","og_title":"Indian Can Stop 'Google Tax' On US Companies Before April 1st - Trak.in - Indian Business of Tech, Mobile &amp; Startups","og_description":"India has announced its decision to remove the 6% equalisation levy, commonly known as the &#8220;Google tax,&#8221; on online advertisement services from April 1, 2025. The move is seen as a strategic effort to mitigate trade tensions with the US, particularly amidst ongoing negotiations. This decision is part of 59 amendments proposed in the Finance [&hellip;]","og_url":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/","og_site_name":"Trak.in - Indian Business of Tech, Mobile &amp; Startups","article_published_time":"2025-03-27T03:33:47+00:00","article_modified_time":"2025-03-27T03:34:22+00:00","og_image":[{"width":1024,"height":576,"url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg","type":"image\/jpeg"}],"author":"Mohul Ghosh","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Mohul Ghosh","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/","url":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/","name":"Indian Can Stop 'Google Tax' On US Companies Before April 1st - Trak.in - Indian Business of Tech, Mobile &amp; Startups","isPartOf":{"@id":"https:\/\/trak.in\/stories\/#website"},"primaryImageOfPage":{"@id":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#primaryimage"},"image":{"@id":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#primaryimage"},"thumbnailUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg","datePublished":"2025-03-27T03:33:47+00:00","dateModified":"2025-03-27T03:34:22+00:00","author":{"@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7"},"breadcrumb":{"@id":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#primaryimage","url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg","contentUrl":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg","width":1024,"height":576},{"@type":"BreadcrumbList","@id":"https:\/\/trak.in\/stories\/indian-can-stop-google-tax-on-us-companies-before-april-1st\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/trak.in\/stories\/"},{"@type":"ListItem","position":2,"name":"Indian Can Stop &#8216;Google Tax&#8217; On US Companies Before April 1st"}]},{"@type":"WebSite","@id":"https:\/\/trak.in\/stories\/#website","url":"https:\/\/trak.in\/stories\/","name":"Trak.in - Indian Business of Tech, Mobile &amp; Startups","description":"Trak.in is a popular Indian Business, Technology, Mobile &amp; Startup blog featuring trending News, views and analytical take on Technology, Business, Finance, Telecom, Mobile, startups &amp; Social Media Space","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/trak.in\/stories\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/5092a7d2906e3f3c819643435477c2a7","name":"Mohul Ghosh","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/trak.in\/stories\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/66c129d83dd3f325a3b550eb1aa16891173ddfc4686361424206cd9a01311c89?s=96&d=mm&r=g","caption":"Mohul Ghosh"},"url":"https:\/\/trak.in\/stories\/author\/mohul-ghosh\/"}]}},"jetpack_featured_media_url":"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/03\/Income-Tax-1280x720-1024x576-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1292589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/comments?post=1292589"}],"version-history":[{"count":1,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1292589\/revisions"}],"predecessor-version":[{"id":1292601,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/posts\/1292589\/revisions\/1292601"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media\/1292600"}],"wp:attachment":[{"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/media?parent=1292589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/categories?post=1292589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trak.in\/stories\/wp-json\/wp\/v2\/tags?post=1292589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}