Google India’s revenues decline 57% in 2018-19, profit increases 16%

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Published: October 23, 2019 1:01:55 AM

The proposal would be finalised by the end of next year with formulae to calculate allocation of profits and corresponding taxing rights to countries and jurisdictions.

Transactions on the platform crossed 0 billion on an annualised basis during the period. Rival PhonePe last reported 55 million MAU as of June 2019.

Google India’s revenues declined by 57% to Rs 3,992.8 crore in the year to March 2019, compared to the year-ago period. Net profit, however, increased by 16% year-on-year to Rs 472. 8 crore in FY19, according to the company’s filings with the RoC, sourced from business signals platform Tofler.

The firm earns the bulk of its revenue from paid advertising. India currently imposes a 6% so-called equalisation levy on payments for digital advertisement services received by non-resident companies without a permanent establishment here, if these exceed Rs 1 lakh a year. The companies using these services are required to withhold the tax amount.

The basic framework to tax digital companies as released by the Organisation for Economic Co-operation and Development (OECD) could potentially bring companies like Google, Facebook and Netflix, among others, under larger tax liabilities than what they currently pay in jurisdictions like India.

The proposal would be finalised by the end of next year with formulae to calculate allocation of profits and corresponding taxing rights to countries and jurisdictions.

In its annual Google for India event held in New Delhi last month, the digital firm had announced the launch of various India initiatives including a Vodafone-Idea phone line powered by Google Assistant to make information accessible to 2G users and partnership with BSNL to bring fast public wi-fi services to villages in Maharashtra, Gujarat and Bihar.

The company had also said its digital payments platform Google Pay hit 67 million monthly active users (MAU) in India as of September 2019, a growth of three times on year. Transactions on the platform crossed $110 billion on an annualised basis during the period. Rival PhonePe last reported 55 million MAU as of June 2019.

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