New Delhi, Mar 24 (PTI) Congress member Neeraj Dangi raised the 'Google tax' issue in Rajya Sabha where he expressed concern over low rate of levy proposed on foreign internet firms compared to what Indian businesses pay.
He said that the foreign internet firms may stop disclosing their income from Indian entities due to the proposed tax.
'In future this can lead to three problems. First, due to the imposition of this tax, possibly foreign firms may not share their business data. Second, the tax rate is less than the rate at which it is imposed on income of Indian businessmen and third, it may adversely impact business of technology start-ups in India,' Dangi said.
A six per cent equalisation levy is proposed to be levied on firms like Google, Facebook, Twitter, Yahoo etc from June.
Dangi said that the electronic signature mentioned in the notification for disclosure of transaction is not fully legalised.
He referred to a report of industry body IAMAI which said that the levying of Google tax on foreign firms may adversely impact business of technology start-ups in India.
He urged the finance minister to reconsider the proposal. PTI PRS ZMN