Google, Facebook, Twitter, Amazon stare at 30-40% digital tax blow in India

At present, India has the equalization levy framework for limited foreign transaction happening digitally

Global technology giants such as Google, Facebook, Twitter, and Amazon may soon have to pay a ‘digital tax’ in India. The Central Board of Direct Taxes (CBDT) has prepared a draft proposal under the newly introduced concept of “significant economic presence”, also known as digital permanent establishment (PE), which seeks to impose tax at 30 to 40 per cent rate based on the revenues and user base of such companies in India, sources familiar with the development said.  

“This is for digital services offered by global firms in the country from the unit based outside the country. The new tax