AdWords case: ITAT order favours tax department

The ITAT had earlier ruled in favour of the revenue department in the case of Google India payment for AdWords for the assessment year 2006-07 to 2012-13

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Indivjal Dhasmana New Delhi

Last Updated : May 12 2018 | 2:10 AM IST

Google India will have to shell out a 10 per cent withholding tax for its payment to its Ireland unit for the AdWords advertising service for the assessment year 2013-14, the Income Tax Appellate Tribunal’s Bangalore bench has ruled.

AdWords is an online advertising service developed by Google where advertisers pay to display brief advertising copy, product listings and video content within the Google ad network for web users. AdWords’ system is based partly on cookies and partly on keywords determined by advertisers.

The ITAT had earlier ruled in favour of the revenue department in the case of Google India payment for