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Tax authorities alert foreign tech firms of GST to avert nasty surprises

Tax authorities alert foreign tech firms of GST to avert nasty surprises

Indian tax authorities are alerting overseas gaming, fintech and content service providers in distant jurisdictions like the US, Malta, and Curacao about the goods and services tax (GST) law to spare these offshore firms of nasty surprises later.

An email, in the nature of an information flyer, is being sent to these offshore business-to-customer (B2C) entities by the Bangalore nodal office of Central Board of Indirect Taxes and Customs which administers the common indirect tax which came into effect from July 1, 2017.

Several companies whose platforms are being used by Indian residents for entertainment, trading as well as educational purposes have so far received the communique from the tax office.

“While the Indian revenue is educating foreign online service providers on the mandated compliances, it is equally important to incentivise these foreign corporations to carry out compliances --- providing amnesty for the past taxes along with interest and penalties would go a long way in enabling these corporations to commence compliances in India,” said Uday Pimprikar, National Leader, Indirect Tax, EY.

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