Google India rushes to clarify says it pays all leviable tax, cess

Written by ENS Economic Bureau | New Delhi | Updated: Feb 20 2014, 20:55pm hrs
Google IncGoogle India says it has been paying taxes in India in accordance with the applicable laws of the country.
Google India has clarified that it complies with the tax laws in every country where it operates and has been paying taxes in India in accordance with the applicable laws of the country.

The clarification by Google was in response to news reports suggesting that Google India had said, in its affidavit to the Delhi High Court, that it is not liable to pay any taxes in India as it is not providing any taxable services or earning income from here, nor does it have a permanent establishment in the country.

The companys clarification reads: Google India pays Corporate Income Tax along with all leviable cesses as per Indian tax laws on the profits generated from its services as a reseller of advertising space in India and rendering IT/ITeS services.

It also said that Google Inc, which is incorporated under the laws of the United States, is the ultimate parent company of Google India.

Google Inc does not have any office or branch in India and does not earn any taxable income from India, it added.

The affidavit in the Delhi high court was in response to a plea by a former BJP leader KN Govindacharya seeking recovery of taxes from the website on its income from operations in India.

The claims were reportedly opposed by Govindacharya, who has contended that websites such as Facebook and Google Inc are liable to pay taxes as they generate huge revenue through agreements with Indian advertisers as well as the sale of games and applications to internet users in the country.