INDIA WILL HAVE TO WALK A TIGHTROPE TO COLLECT TAXES FROM FOREIGN FIRMS THAT BRING INNOVATIVE SERVICES.
In recent times, the use (or misuse) of customer data has been hogging headlines. In a parallel world, not so far away, it has been in the news for another reason–taxation. Whether you read the news, buy merchandise or post reviews online, it leaves a digital footprint in the form of data. Such data is collected, and analysed by businesses (digital and otherwise), for targeted advertising. This data also helps businesses improve their offerings, and thereby generate increased revenue. In this scenario, the question being raised globally, including in India, is – who has taxing rights over such revenue.
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