'Not clear at all': Google tax sends foreign firms looking for answers

Several foreign universities are wondering if sharing their research papers or findings online behind paywall will attract the Google tax, with the law largely unclear on many things.

There are other unanswered questions such as are foreign banks with users in India liable to pay the tax, called equalisation levy, for charges levied on online transactions? 

These queries on the scope of the law, tax liability, and double taxation have puzzled non-resident entities and the government has ruled out issuing clarifications through ‘frequently asked questions’.

The ambiguity has impacted compliance, with a 25 per cent drop seen in collections at