A Comprehensive Analysis of Digital Taxation in India

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Published Aug 25, 2022
https://doi.org/10.35737/sjccmrr/v11/i1/2021/170
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Volume 11, Issue 1, June 2021

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R Sarvamangala
Professor, Department of Commerce, Jnanabharathi Campus, Bangalore University, Bengaluru
Farzana A.
Research Scholar, Department of Commerce, Jnanabharathi Campus, Bangalore University, Bengaluru

Abstract

A rapid increase in the digitalization of businesses and technology overall the country leads the tax authorities to overlook the way to regulate compliance of tax rules by the taxpayers and collect adequately taxes that are due. The e-commerce market is expected to grow to $200 billion by 2026 and its taking share of the pie will substantially increase revenues for the Indian Government. Because of the digital economy, taxpayers have access to new income streams; however, International taxation arrangements find it difficult to keep pace with globalization and market liberalization especially with an issue like taxing E-commerce. These virtual businesses operate and earn revenue overall the world but their pay the taxes only to the country in which it's headquartered located. To undertake such non-taxable income under tax regimes and earnings from other countries, the concept of 'Equalisation levy' or also known as 'Digital taxation' was introduced in the year 2016 in India on online advertisement. Further amendments have been made with the view to bring all such non-resident E-commerce operators to pay the taxes on revenue earned from our country.The purpose of the studyis to mainly highlight the concept of Digital taxation, its benefits of implementation, advantages, and challenges that occurred after it was introduction. The paper is on conceptual research and secondary data is used of the study. The study is only confined to India.

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How to Cite
R Sarvamangala, & Farzana A. (2022). A Comprehensive Analysis of Digital Taxation in India. SJCC Management Research Review, 11(1), 137–151. https://doi.org/10.35737/sjccmrr/v11/i1/2021/170
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