Income Tax

Google notice-Publishers to deposit 6% equalisation Levy for invoices raised for online advertisement on or after 01/06/2016 as per Adword terms

Google notice-Publishers to deposit 6 Percent Equalisation Levy 

Hello,

This is to inform you that 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 you are aware, 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, you will need to deposit 6% Equalisation Levy (as applicable).

The Google Payments Team

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