Govt panel for levy on e-com through emails, blogs

iPwnz

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Digital transactions such as emails, blogs and downloads may soon be taxed if the recommendation of a committee on e-commerce levy are accepted.
The committee was set up by the Central Board of Direct Taxes. It has recommended a tax of six to eight per cent on 13 services, in a bid to prevent tax avoidance by multinationals.
And the PM wants foreign investments in the country lolwut?
IN THE OFFING: Some B2B services on which the committee has recommended equalisation levy of 6-8%
*Online advertising or any services, rights or use of software for online advertising, including advertising on radio & television.
*Digital advertising space.
*Designing, creating, hosting or maintenance of website.
*Digital space for website, advertising, e-mails, online computing, blogs, online content, online data or any other online facility.
*Any provision, facility or service for uploading, storing or distribution of digital content

http://wap.business-standard.com/ar...-com-through-emails-blogs-116032200009_1.html

TAX THIS, TAX THAT, TAX EVERY GAWD-DAMN THING IN THE COUNTRY!
More #AccheDin boys. This is the government which I'm going to vote for in the coming state election. :p
 
Quote from http://blogs.economictimes.indiatim...sinesses-gives-indians-a-level-playing-field/

"A basic principle of taxation is neutrality. It should not encourage some businesses while harming others. If selling music CDs is taxed, but streamed music is not, the tax practice is inefficient, in that non-economic factors decide which business is more viable. Excluding digital businesses while physical ones pay tax violates neutrality. Excluding foreign digital businesses from tax while local ones are taxed violates neutrality."
 
I would mind taxing bulk emailers.

And the PM wants foreign investments in the country

Can you explain you point? How does a tax on payments to foreign companies for digital goods (which bypass the customs) discourage foreign investment. If at all, it should encourage it (companies may set up indian subsidiaries to bypass the tax).
 
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Dude if someone is making a profit out of these services why should they not be taxed? Does the complete responsibility of paying taxes lies only with salaried individuals?
Quote from http://blogs.economictimes.indiatim...sinesses-gives-indians-a-level-playing-field/

"A basic principle of taxation is neutrality. It should not encourage some businesses while harming others. If selling music CDs is taxed, but streamed music is not, the tax practice is inefficient, in that non-economic factors decide which business is more viable. Excluding digital businesses while physical ones pay tax violates neutrality. Excluding foreign digital businesses from tax while local ones are taxed violates neutrality."
All of the above services are already taxed under service tax. Please read up before you comment. This is an EXTRA levy.

So service tax - 15%
+ Levy announced in budget 6-8%
+ This extra one - 6-8% (This is beyond the Budget proposal to impose an equalisation levy of six per cent on online advertisement, provision for digital advertising space or any other facility or service for online advertisements.)

Total tax payed (assuming on base amount and not on service fee+service tax amount) = 27% to 31%

Good luck doing any business with those taxes. A service of 1lac will cost 1,30,000/- How many of you are ready to pay extra 30k to the govt for making a website eh?
 
This new taxation is on B2B services only, How would this affect Individuals earning through blogging, freelancing etc??
 
Exactly what @Party Monger said. They have already been taxed. It would be illegal to operate without the govt's knowledge or registration.
Can you explain you point? How does a tax on payments to foreign companies for digital goods (which bypass the customs) discourage foreign investment. If at all, it should encourage it (companies may set up indian subsidiaries to bypass the tax).
I had quoted a post in another thread. India doesn't have the best taxation policy and its said that this is what keeping investors away. Unfortunately setting up companies in India isn't so easy. Too complicated i guess. And this taxation on the "internet" will only make the situation worse.[DOUBLEPOST=1458733497][/DOUBLEPOST]
This new taxation is on B2B services only, How would this affect Individuals earning through blogging, freelancing etc??
"Digital space for website, advertising, e-mails, online computing, blogs, online content, online data or any other online facility."
Basically anything "online" will be taxable.
And if these online business activities are taxed more do you think it will not affect the consumers who use their services? It always directly or indirectly affect us.
 
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India doesn't have the best taxation policy and its said that this is what keeping investors away.

Are you sure. Can you back this statement up? Which FDIs didnt' materialize because of the tax policies? From the top of my head, I can recall a few FDI proposals which were withdrawn/failed/had prblems (IKEA, Foxconn, Posco, Honda) and none of them had anything to do with taxes. Vodafone ran into tax issues (so did facebook in UK) but I don't see them folding up anytime soon.

Unfortunately setting up companies in India isn't so easy. Too complicated i guess. And this taxation on the "internet" will only make the situation worse.

Two completely different issues (Ease of starting a business and tax code).

I read the link you posted. How is it a taxation on the "internet"? This is customs for digital goods/services. We do pay customs when software is imported on CDs, so how can this be such a bad thing?
 
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This is beyond the Budget proposal to impose an equalisation levy of six per cent on online advertisement, provision for digital advertising space or any other facility or service for online advertisements.
I guess that article quoted in the main post is wrong. This is not above and beyond the equalization levy. Govt proposed the levy for just B2B services and ads. The CBDT has recommended that more services be included under this.
http://www.medianama.com/2016/03/22...s-recommended-by-indian-government-committee/

BTW, this means that companies like Godaddy and Amazon have to pay tax, right? Why is that so wrong? It needs more work I'm sure, but is definitely a good start.[DOUBLEPOST=1458738252][/DOUBLEPOST]Another good read here, mentioning the negatives: http://thewire.in/2016/03/03/modis-...t-but-more-is-needed-to-tame-tech-mncs-23563/
 
Pay more attention to the economic news. I could use lmgify if you want. I myself started reading them since only a few months ago thanks to the sudden interests. Regarding the example which you gave you mentioned only two very huge corporate organizations with enormous revenue so they can still scale even with higher costs.
And actually starting a business and taxation are inter-related. You're not going to want to start a business with high taxes (to impose on your customers) will you?
Its not difficult looking them up on the web.
Reply is for dpandey.
 
I guess that article quoted in the main post is wrong. This is not above and beyond the equalization levy. Govt proposed the levy for just B2B services and ads. The CBDT has recommended that more services be included under this.
http://www.medianama.com/2016/03/22...s-recommended-by-indian-government-committee/

BTW, this means that companies like Godaddy and Amazon have to pay tax, right? Why is that so wrong? It needs more work I'm sure, but is definitely a good start.[DOUBLEPOST=1458738252][/DOUBLEPOST]Another good read here, mentioning the negatives: http://thewire.in/2016/03/03/modis-...t-but-more-is-needed-to-tame-tech-mncs-23563/
LOL What is B2B dude? You have a hotel and it advertises on google, that is B2B. Who else advertises other than businesses? Most freelancers operate as a business. You need a shop license (gumasta) etc. So all this will do is increase the cost of services of these companies. This is unnecessary complication and these MNCs will find a way out of that, normal people will be left effed.


Are you sure. Can you back this statement up? Which FDIs didnt' materialize because of the tax policies? From the top of my head, I can recall a few FDI proposals which were withdrawn/failed/had prblems (IKEA, Foxconn, Posco, Honda) and none of them had anything to do with taxes. Vodafone ran into tax issues (so did facebook in UK) but I don't see them folding up anytime soon.



Two completely different issues (Ease of starting a business and tax code).

I read the link you posted. How is it a taxation on the "internet"? This is customs for digital goods/services. We do pay customs when software is imported on CDs, so how can this be such a bad thing?
You expect Vodafone to forget its investment and leave? That one case sent most FDI packing back. The BJP still hasnt removed that law. They just promised to "not use is". Who'l take Modi at his word? You see all that investment being promised in billions? None of them come through, cause then businesses take a closer look and find why modi is spending shit tonne on ads and where the catch is.
 
You expect Vodafone to forget its investment and leave? That one case sent most FDI packing back. The BJP still hasnt removed that law. They just promised to "not use is". Who'l take Modi at his word? You see all that investment being promised in billions? None of them come through, cause then businesses take a closer look and find why modi is spending shit tonne on ads and where the catch is.

If you believe Modi's policies are bad, whose do you think are better?[DOUBLEPOST=1458932479][/DOUBLEPOST]I am not sure if people understand how govt finance works. If govt can't raise the money through taxes, they will get the reserve bank to print it thus taxing everybody by inflation.

The choice is between high targeted direct taxes or tax by inflation (the third option is reducing govt expenditure, but good luck with that one).
 
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You have a hotel and it advertises on google, that is B2B. Who else advertises other than businesses? Most freelancers operate as a business. You need a shop license (gumasta) etc. So all this will do is increase the cost of services of these companies. This is unnecessary complication and these MNCs will find a way out of that, normal people will be left effed.
It's sad that Modi Govt. is using "Startup India" campaign just for marketing aid. But their policies are against small business.

May God Almighty bless our dear nation!
 
Their idea is to tax Google, they get away without any taxes if you pay them internationally. So basically any competing website like Google ends up paying taxes as they are licensed in India. This will ensure a level playing field for a Indian competitor
 
If you believe Modi's policies are bad, whose do you think are better?
Bad would be a very mild word. IF they did take any real efforts rather than just advertising, you'd see the growth in industry and the tax collections. You might be surprised but the congress's policies were better. They did not write of 6 lakhs of corporate loans and then put 1.35 crore of public money to refinance banks. When scammers can run and maintain the economy, its speaks volumes of your incompetence. He came in promising monumental change. Where is that change? Do you even see a shift in policy? Reforms? Only progressive laws that are being passed have been from Congress era, which btw BJP opposed tooth and nail themselves. The only new ideas that are there exist in the form of glorified ad campaigns to project a certain image of Modi.

"Startup India".- More like LOL India. You dont pay income tax, Modi shouts. To be elibigle you need to get approval from an interministerial panel. LOL Okay you got the approval? Wait you are in profit? wtf, pay MATat 18%. They way MAT is calculated its essentially equal to 30% of Income tax.

Swatchh Bharat- Im sure all the streets are clean now that modi cleaned a few roads in a bunch of photo ops.

Jan Dhan Yojna - More like lol yojna. Empty bank accounts, and each of these people will use the manual mode. They couldnt wait to simplify the process and enable mobile banking for less fortunate population. Its a cruel joke on banks and these people. Would have saved banks sometime and better service to these people.

Theres a lot more. You ask me who's policies are better? Why dont you go see what Kejriwal is doing. Actual results as promised in the elections. No jumlas.
He gives free water to the needy, but saves the amount of water used and manages to increase the profit of the jal board.
He gives free medicines by removing corruption in the medical departments and making last mile healtcare outreach possible.
He trusts people, doesnt increase taxes, instead of letting ministers be corrupt, increases their salary so they can work in a healty environment without temptation or need. Now the people and the party are solidly behind him. Its not socialism or capitalism or leftism or communism. Its about common-sense-ism. Do what makes sense, on merit and change peoples lives better.

BJP, congress etc are based on a predatory model. IF they ever do anything it will be for the corporates. While you pay taxes to run the nation. They will never work hard to ensure you progress. Oh we have less revenue? Cool lets tax these biatches more. Hurrah.

I am not sure if people understand how govt finance works. If govt can't raise the money through taxes, they will get the reserve bank to print it thus taxing everybody by inflation.

The choice is between high targeted direct taxes or tax by inflation (the third option is reducing govt expenditure, but good luck with that one).
I do understand everything you said. It makes sense. And im sure you would agree that there is a fourth option of smarter polices, lesser corruption, more attention to detail, more return from the current investments, performance audits and over all better management and reforms. If Kejriwal can do it why is the 56inch chest man so incompetent?

When you face a certain amount of expense either you are rich enough to pay it, or smart enough to manage the same at a lower cost by using your brain.
 
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Their idea is to tax Google, they get away without any taxes if you pay them internationally. So basically any competing website like Google ends up paying taxes as they are licensed in India. This will ensure a level playing field for a Indian competitor
You think? The end consumer will always bear the brunt. They should have made it mandatory for Google to register and provide those services through Indian subsidiary and charge income tax. Instead they charge a certain percentage of total service value. Which like service tax will be passed on to you. Wait and watch the retarded policies of this govt. You'll find it hard to even do simple business here much less startup.
 
LOL What is B2B dude? You have a hotel and it advertises on google, that is B2B. Who else advertises other than businesses? Most freelancers operate as a business. You need a shop license (gumasta) etc. So all this will do is increase the cost of services of these companies. This is unnecessary complication and these MNCs will find a way out of that, normal people will be left effed.
yeah

You expect Vodafone to forget its investment and leave? That one case sent most FDI packing back. The BJP still hasnt removed that law. They just promised to "not use is". Who'l take Modi at his word? You see all that investment being promised in billions? None of them come through, cause then businesses take a closer look and find why modi is spending shit tonne on ads and where the catch is.
It's not just Modi that is the problem, its no guarantee post Modi. These investments are long term and the current unwillingness of the govt to remove such a law and make it certain is the issue. Noody wants extra risk, they are looking to reduce it.

But govts are wont to give up taxing possibilities.

In the end this is just a panel, there is more work to do and remember if they pass anything that meets with disapproval they will retreat. See the PF and jewelers.

The country's finances are not in a good state. this administration has to fix the problems caused by the previous one. On top of that we had two drought years. They need to raise money whatever way they can and people are going to push back.
 
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