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Message by Google Payments Team

6% Equalisation Levy by Government of India on Online Advertisement Services


As per the Notification No. 37/ 2016: F.No. 370142/12/2016-TPL dated 27 May 2016 read with Finance Act, 2016, Government of India has levied an ‘Equalisation Levy’ on provision of online advertisement services or any other service or facility for the purpose of online advertisement by a Foreign Company provided on or after June 1, 2016 to specified customers in India.

The applicable rate of the levy is 6% of value of fees for providing online advertisement or related services.

As per the terms and conditions applicable to AdWords require customers to bear any tax or Government charges on the services availed of by them.

Accordingly, with respect to invoices raised by Google for online advertisement and service for the purpose of online advertisement provided on or after 1 June 2016, all bloggers will need to deposit 6% Equalisation Levy (as applicable).


Shiv Das said...

Do you know what will be the effect on us, who are small time Google AdSense Advertisers earning smaller amounts from YouTube Channel and Blog ?

Andro+ said...

Being publisher also, i am entailed to pay 6% tax ?

I am earning from multiple ad networks not only from Google, how do i calculate 6% ?, this is not startup india, this is bulshit india.

Anonymous said...

They say 6% is for those earning more than 1 lac from ads.
But not clear what does this mean.
Does this mean that if we are earning less than 1 lac from Google ad sense then we do not require to pay 6% tax or does it mean that because google earns more than 1 lac, we will have to pay from our smaller amounts earned. Need to clear this.

Again this can affect google, because it says blogger has to pay. And why will blogger waste his time in knowing how to pay etc. Actually Google should deduct and pay as it is a company and also has staff in India and abroad.

Lets see, when we will ask for payment at that time, we will know , what is the strategy.

Govt. wants Google to pay and Google says as per terms and conditions each blogger should pay for them! Now thats complicated, hard and worth avoiding.