Digital corporations can operate in a market without a physical presence. The current basis for taxing in a particular jurisdiction is a notion of a fixed place of business. In light of this, examine the challenges in taxing the digital companies and how India is dealing with such a challenge? 10 marks

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  • In the intro, briefly mention the equalisation levy implemented by India.
  • In the body, mention the issue of taxing the digital companies as they operate in countries different from the country to which they belong with a physical address. The country in which business is carried out faces the threat of losing the power to tax the companies. In the next part, mention the provision of Digital Service Tax to deal with the issue.
  • Conclude by mentioning the need to find common ground at the international level to tax the digital companies.
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3 years ago


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3 years ago
Reply to  Parth Verma

It’s a one page answer only. I didn’t know more.


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