New Delhi, Google India has also shocked the appellate forum in the income tax case. Income tax Appellate Tribunal (ITAT) has paid the company’s advertising income to Google Ireland Ltd. In the case of sending, the income tax department’s notice of tax demand has been right. The Bengaluru bench of ITAT upheld the tax department’s order in the order of 331 pages that such payment is royalty and hence it becomes a matter of cancellation of tax on the under-tax (source tax deduction).
Google India said that it will challenge this system in the High Court. Google Ireland Ltd Had filed an appeal with ITAT about the classification of payments made to them. Google India claims that it is the general distributor / reseller of advertisers in Google AdWords program in India.
In this, it is not a bargain for the transfer of rights or the use of any patent or use of innovation for the work of distribution, so it can not be taxed like royalty. Tax department found that without the deduction of tax deduction at source for assessment year 2012-13, 1,114.91 crores of Google Ireland Ltd Transferred to
Based on this, the department gave notice of tax demand of Rs 258.84 crore. A Google spokesman said, “We comply with all tax laws in India and pay every tax. We will file an appeal against the order.