FinMin may defer google tax on e-commerce firms based abroad to September

Move after evaluating the challenges faced by digital firms amid pandemic

The finance ministry may defer till September the new equalisation levy, also known as google tax, on e-commerce companies that do not have permanent establishments in India, according to government sources. The ministry deliberated the matter with the revenue department and the Central Board of Direct Taxes after it received several representations from digital and tech companies, said the sources.
 

The postponement would be till the second quarter of this financial year.
 

E-commerce giants such as Amazon, Netflix and Flipkart, whose headquarters are not in India, potentially have to pay the additional levy of 2 per cent from April 1.