The World Trade Center organized a webinar “Future Landscape of Digital Taxes in India” in association with NASSCOM which discussed some of the crucial developments impacting the technology sector, including the much spoken about Supreme Court judgement on software royalty taxation and some of the Government’s proactive measures to tap this segment of the future. Mr. Rakesh Nangia, Chairman, Nangia Andersen LLP and Mr. Sandeep Jhunjhunwala, Partner, Nangia Andersen LLP were the Speakers.
Mr. Jhunjhunwala stated that India is now the most promising internet market in the world with companies like Facebook, Google and Whatsapp having their largest user base in India. He explained the major challenges in taxing the digital economy as – Businesses operating globally without local presence, value attribution and income characterization. He explained the difference between digital tax components before and after the recent Supreme Court judgement on Royalty tax.
Mr. Rakesh Nangia gave a brief history of judgements by various courts and tribunals in the past two decades on digital taxes. Mr. Nangia detailed on the concept of Equalization Levy and the amendments that had been made in it by Finance Act 2021.
The Significant Economic Presence (SEP) which is an upcoming law was also discussed. It expands the scope of income of a non-resident which accrues in India. He also listed the features of the new IT and Digital News Media rules. The Data Localisation norms and the scope of Personal Data Protection Bill 2019 was also deliberated on.
Mr. Vivek George, Manager, World Trade Center and Mr. Dinesh N, Territory Manager, NASSCOM also spoke.