J&K loses special status: Google tax may be levied in new Union Territory

The equalisation levy was introduced in June 2016, but not through an amendment in the Income Tax Act despite being a form of direct tax

India’s version of Google tax, or the equalisation levy, may now be applicable in Jammu & Kashmir. With Parliament passing a Bill to revoke Article 370, digital commerce operators advertising on global social media, which earlier did not pay Google tax on their operations in Jammu & Kashmir, may now have to cough it up at 6 per cent.

According to people across companies, firms such as Facebook, Google, Amazon and Flipkart, among others, are all trying to figure out various tax implications of the government’s move.

“We are assessing if we need to start paying additional taxes, and also if we