tax

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Pavaman PN Ppn

Pavaman PN Ppn (Querist)
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16 June 2016 Google tax is a direct or indirect tax?

CA Anant Tyagi

CA Anant Tyagi (Expert)
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16 June 2016 Google tax is Direct Tax. It is a withholding tax (TDS) @ 6%. Any person making payment exceeding Rs. 1 lac to non resident to advertise with them shall deduct tax @ 6% before making payment to Non Resident.

Pavaman PN Ppn

Pavaman PN Ppn (Querist)
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16 June 2016 sir tax provided within country or for foreign

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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26 July 2025 The **Google tax (TDS @ 6%)** is a **direct tax** applicable **within India** on payments made to **non-resident entities** like Google for digital advertising services.

* So, **if you are an Indian resident or business paying Google (a foreign company) for ads**, you must deduct 6% TDS before payment.

* This tax is deducted **in India** because the payment is made from India to a foreign entity.

* The foreign entity (Google) may claim credit of this tax in their own country under Double Taxation Avoidance Agreement (DTAA), if applicable.

So to clarify:
**Google tax is a direct tax applied within India on payments made by Indian entities to foreign companies like Google.**

Let me know if you want more details on how to deduct, deposit, or report this TDS!

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