Oct 14, 2021
India to eventually gain from OECD global tax deal: CBDT
India will stand to gain in term of tax revenues over the next few years thanks to the implementation of the OECD Inclusive Framework on Base Erosion and Profit Shifting from 2023 aimed at addressing the tax challenges arising from the digitalisation of the global economies, Central Board of Direct Taxes (CBDT) chairman JB Mohapatra told FE. However, tax experts were sceptical about the likely gains for India from the new regime in the medium term at least.
India will continue with equalisation levy known as ‘google tax, which fetched about Rs 2,200 crore in FY21 and it is projected generate revenue of over Rs 3,000 crore in FY22 till the OECD framework is implemented, Mohapatra said. Besides EV, India will also have to abolish the special economic presence (SEP) brought in this year to target multinational enterprises (MNEs) with a large consumer base but escaping the tax net.