Connect with us

Phone News

Android & iOS Apps to cost more by 7-8% in India because of Equalisation levy

Published

on

There are millions and millions of applications on the App Store and Google Play Store, which is being downloaded by many across the globe. These mobile applications on both iOS & Android platforms could get costlier soon. Yes, these apps that can be bought from the App Store and Google Play Store are going to experience a price hike, thanks to additional taxes as the government is looking to include them under the ambit of the equalization levy by the end of December.

In case you don’t know, an equalisation levy of about 6% is currently applicable on online advertisements on multinationals registered outside India. The impact of the levy on app prices may be as much as 7-8% due to this grossing up of taxes. This tax on cross-border digital transactions, will not only be next applied to mobile applications bought from companies such as Apple and Google, but other digital transactions could be brought under its purview at a later stage.

A committee constituted by the Central Board of Direct Taxes (CBDT) had suggested something similar, so this move may not come in as a surprise for this industry. The move comes as multinationals have just started paying these Levy. However, there is no response from the India’s competent authority for international taxation.

According to experts, the Government would only need to issue a circular to cover apps as the first round of guidelines kept the term “digital transaction” open ended. But there is a concern in some that TV advertisements on international channels may be included too. According to a report, about 33% of major Indian companies advertise on multinational online platforms. As many as 80% of them are hoping the equalization levy is made part of tax treaties India has with other countries.

However, there is also a view that multinationals, especially those in the digital economy, should pay their rightful share of taxes, which makes sense. Let’s see what the outcome of this is going to be. Looks like much more complicated scenario, but expect some news on this soon and stay tuned for that.

Continue Reading
Comments

Recommended Video

Connect on Facebook

Top 5

Top 53 months ago

Top Features of the Vivo V7 Plus Smartphone

Vivo has finally unveiled the all-new selfie-centric smartphone dubbed Vivo V7 Plus in India. Though it is the successor to V5...

Top 55 months ago

Top 5 Best Performing Smartphones Under Rs 30,000 You Can Buy in August 2017

2017 has been an amazing year for smartphones. We have seen some really great smartphones launching this year so far...

Top 57 months ago

Top 5 Features of the Panasonic Eluga Ray Smartphone

Panasonic launched the new Eluga Ray smartphone here in India a couple of weeks back. This is yet another offering...

Top 51 year ago

Top 3 Smartphones from UMi you should take a look at

UMi is a Chinese smartphone manufacturing company that has launched a couple of smartphones previously. The smartphone manufactured by the...

Top 51 year ago

Fix Top 5 Pokemon Go Problems like Server Issues, GPS error, Battery Drain

Pokémon Go by Niantic began rolling out to players across the globe, and like all any other new game release,...

Top 51 year ago

Top 5 Features of Samsung Galaxy On5 Pro & On7 Pro Smartphones

The South Korean smartphone manufacturer Samsung, has been doing pretty good job with the budget smartphone lineup. They have introduced...

iPhone 6s - 1750mAh Battery iPhone 6s - 1750mAh Battery
Top 51 year ago

5 Tips to Make your Smartphone Battery Last till the End of the Day

Smartphones are the most useful piece of gadget that we own, which helps us get our jobs done easily. We...

Samsung Galaxy S6 Edge Plus - Top Features Samsung Galaxy S6 Edge Plus - Top Features
Top 52 years ago

5 Most Important Features of Samsung Galaxy S6 Edge+

Samsung fans must be in awe this year, as they’ve got to see two new flagship devices within the span...

Top 5 Missing Features on Samsung Galaxy Note 5 Top 5 Missing Features on Samsung Galaxy Note 5
Top 52 years ago

Top 5 Missing Features on Samsung Galaxy Note 5

Samsung has launched the much-anticipated smartphone ‘Galaxy Note 5‘ with not much improvements over specifications, but you can find the...

Samsung Glaxat Note 5 Featured image Samsung Glaxat Note 5 Featured image
Top 52 years ago

Top 5 – Most Important features of Samsung Galaxy Note 5

Samsung Galaxy Note 5, the biggest announcement by Samsung Mobiles in New York. The features of the device are pretty...


Trending