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.
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!