Top tech firms wait for confirmation before adjusting their taxes

Last updated on February 11th, 2022 at 05:52 am

Top tech firms do not want to risk big time when it comes to stop doing their taxes and hence they are choosing to play it safe. Firms like Google, Facebook, Twitter, Amazon, and Apple have decided to not go ahead with deferred tax property.

This means they will not be approving or capitalizing their account statements for another year to come till they come to terms with India’s stand on equalization levy, based on tax advisors.

As per Ajay Rotti, who is an accomplice with tax advisory agency Dhruva Advisors, “India has said that the 2% equalization levy it has collected from US multinationals will be adjusted against future tax liabilities of these companies.”

Related Posts

• Amazon And Reliance Deadlock Over Future Group Continues
• Budget Session 2022: Nirmala Sitharaman stresses budget aimed to boost growth
• Here comes the first blockchain wedding in India as couple takes vows with crypto
• India’s Recovery Fastest, Budget To Bring Stability To The Economy, Says Nirmala Sitharaman
• Iphone and other Apple product sales halted in Russia due to conflict with Ukraine
• Meta investors sued after false claims of them ‘managing’ Apple’s privacy update
• Needle-free Covid-19 vaccines by Zydus now in India
• SC gives extension till March 15 to Future group and Amazon to end the legal battle
• Students stage massive protest against Railway exam results; They blocked roads and burned tyres
• Top tech firms wait for confirmation before adjusting their taxes
• Twitter Outage: Twitter Back Online After Software Glitch Disrupts Services

The confusion began in November last year when the Indian government stated that it would modify the two% levy collected from the United States multinational opposition and convert it into future tax liabilities. This was supposed to be done sooner with time as clarity emerges on the OECD’s BEPS framework.

The experts in the matter believe that the best way to go ahead with the issue is by evolving the OECD. Post this, if they find that the federal government is still adamant about not introducing something round pillar one, it should work for SEP or different unilateral measures in the frame of the designated budget.

As per a tax advisor, these companies should ideally wait for a year ahead of going for any permanent measure. This will give them more clarity. “Many companies also want the Indian government to either refund or adjust the 6% equalization levy too,” asserted the expert.