Today reminding us as Narendra Modi day which promises to bring achche din for consumers and online businesses as a multiple proposals in the Union Budget 2015-16 will come into existence.
It includes 0.5 per cent agriculture tax on all services and a comparison levy of 6 per cent on cross border digital transactions. With the dissimulation of Krishi Kalyan Cess (KKC), the total percentage of service tax will increase to 15 percent, thus making eating out, phone usage, air and rail travel, expensive.
The comparison levy or 'Google tax' in common parlance will be applicable on only payments relating to online advertisements. Internet and Mobile Association of India (IAMAI) had said last month that levy on online advertisement revenue of foreign companies would "severely raise the cost of doing business" for Indian tech startups.
From the Experts advise the scheme as a big step towards tax reform and hope that it would act as a breather for companies like Vodafone and Cairn, which have been facing multi-billion dollar tax liability following retrospective tax amendments made in 2012.
