Taxation Of Online Platforms: Comparative Model Relation To India
- IJLLR Journal
- Feb 3
- 1 min read
Ms. Tanisha Nambisan, BA LLB, Symbiosis Law School, Hyderabad
ABSTRACT
The rise of the digital economy has posed as great challenge for the tax system around the world which has founded its base on the physical presence of the subject. With this digital economy there has been an emergence of online platforms which generate revenue at a significant rate from cross- border activities, this in turn affects the traditional system of corporate tax that has based itself on proper establishment failing to consider the digital profits that such forms of platforms generate. In order to recognise these platforms, the governments across the globe have introduced the digital taxation models to protect the revenue being generated, preventing any tax erosions, and ensuring fair cuts for all. India is also one of the nations that has recognised this change by introducing the Equalisation Levy and GST on the online platform services, highlighting India’s approach with both direct and indirect tax policies. This paper compares and analyses the Indian Tax System on Online platforms with co-relation to Japan, Nigeria, and the European Union. These countries have taken different approach for tax application, with Japan recognising foreign entities for VAT regimes, spreading the consumption across, while Nigeria has applied such VAT on the electronic services, and European Union adopting the Digital Service Tax. The comparative study will help understand the impact of these systems, and pros-cons of these systems, with possible lessons for India based on its economy, and such ideas that may reduce trade disputes and protect India’s own autonomic tax model.
Keywords: Tax, GST, Digital Platforms, VAT, Equalisation levy, OIDAR.
