 "Finance Ministry, Central Board of Direct Taxes, SaaS industry, Income Tax Department, payments")
Marquee foreign companies — including Microsoft, Amazon, Google, Oracle, IBM, and Salesforce — providing software-as-a-service (SaaS) products are facing fresh tax demands for 2021-22 and 2022-23.
According to sources, the income-tax department has issued assessment orders to these companies, treating the revenue earned by them from Indian customers as “fees for technical services” (FTS) under Indian tax law.
Any payment for technical, managerial, or consultancy service is treated as FTS and there is a 15 per cent tax on it under the India-United States double tax avoidance treaty.
Email queries sent to the companies as well as the Central Board
