Guest Column: Digital Tax, The shackle to hobble Digital India: Karthik Kumar

The Government should take the stakeholders, the multi-nationals concerned, the service providers in India, trade bodies, etc. and evolve a process that is equitable to all as far as the imposition of digital tax is concerned, writes Karthik Kumar, Director, Rage Communications

e4m by Karthik Kumar
Published: Apr 5, 2016 8:01 AM  | 3 min read
Guest Column: Digital Tax, The shackle to hobble Digital India: Karthik Kumar

The Government should take the stakeholders, the multi-nationals concerned, the service providers in India, trade bodies, etc. and evolve a process that is equitable to all as far as the imposition of digital tax is concerned writes Karthik Kumar, Director, Rage Communications.

Apparently the Central Board of Direct Taxes (CBDT) has mooted a proposal to levy a withholding tax of 6% - 8% on digital transactions, which, among other things covers, digital advertising, ecommerce, infrastructure services, etc. The purported reason for such a tax is, “…to prevent tax avoidance by multinationals.”

The Government’s noble intentions cannot be faulted. Equally, the Government’s ham-handedness in proposing this also cannot be ignored. Before, we go onto why it is ham-handed; it would be worthwhile to keep the amount the Government wishes to raises as revenues in 2016 – 17, Rs 1,377,022 crore. We shall come back to this number shortly.

Let us first take how much revenue can be potentially realized by the digital tax. After a very generous computation of the total expenditure on digital services, the digital tax that would apply will probably be about Rs 50,000 crore. Assuming all of this is subject to the withholding tax, the Government can hope to raise Rs 4,000 crore from the digital tax. In itself this is not a small number, but considered as proportion of the total revenue to Government in FY 16-17, the proposed digital tax will only be a measly 0.3%.

The moot point is, does the Government want to do so much for so little!

What is this so much about?

Take digital advertising. For the sake of argument, let us assume all digital advertising in India goes only to Google and Facebook, and all that revenue is not taxed because the two companies do not report the revenue in India. Small entrepreneurs who are typically charged the expenditure automatically without any formal billing process do a vast portion of the digital advertising. How does the Government expect such advertisers to deduct the withholding tax and pay it to the Government? Moreover, should Google/Facebook, decide to challenge their tax liabilities, does the Government really expect the two companies to provide documentary evidence which could potentially run into millions of withholding certificates, assuming there is a mechanism by which Google and Facebook can collect it.

Let us look at another aspect of the logistics of collecting the withholding tax. Consider Amazon whose cloud hosting service, AWS, is very popular in the digital world. As anybody dealing with AWS knows, the payment process for its services is automated and invoices are machine issued. Unless AWS issues an invoice accounting for the withholding tax, the Indian user of AWS will be unable to withhold the tax. Instead, he will be forced to pay the 8% tax to the Government over and above the payment made to AWS. In such a scenario, the digital tax would become a digital millstone around the neck of the Indian user of AWS. Is that CBDT’s intention?

Does all this mean that the Government of India should not tax potential leakage from revenue earned by the multi-nationals in India. No.

However, rather than creating an unwieldy mess, the Government should take the stakeholders - the multi-nationals concerned, the service providers in India, trade bodies, etc. - and evolve a process that is equitable to all. And, the icing on the cake may well be that the stakeholders themselves will do a significant amount of the work, saving the Government the costs and the blushes involved in collecting the tax!

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

Disney+ Hotstar offers free streaming of Asia Cup, ICC Men’s Cricket WC on cellphone

Both tournaments will be held later this year

By exchange4media Staff | Jun 9, 2023 11:10 AM   |   1 min read

Disney Star

Disney+ Hotstar has announced that Asia Cup and ICC Men’s Cricket World Cup tournaments being held later this year will be made available as free-to-view to all mobile phone users accessing Disney+ Hotstar.

“Disney+ Hotstar has remained at the forefront of the rapidly evolving OTT industry in India and the various innovations we have introduced to continue enhancing the viewer experience has allowed us to delight our audiences across the region. Making the Asia Cup and ICC Men’s Cricket World Cup available to a wider audience, we believe, will help us grow the overall eco-system,” said Sajith Sivanandan, Head of Disney+ Hotstar.

We reached out to Disney+ Hotstar for a comment on the same but are yet to receive a response.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

e4m-ESP Indian Online Gaming Landscape 2023 Report: Glimpses unveiled

The report seeks to decode the growth of the online gaming landscape in India and focus on how brands can leverage this billion-dollar industry

By exchange4media Staff | Jun 9, 2023 10:54 AM   |   2 min read

Game On

India has witnessed a digital revolution over the past decade, driven by various factors such as technological advancements, government initiatives, increasing internet penetration and the rapid adoption of smartphones. With over 750M active internet users in 2022, the country has become a prime destination for the open internet and all that digital media entails. 

The key driver of India’s digital revolution is gaming, with the country being home to close to 500M individual gamers. The ever-evolving gaming market in India is fuelled by devices, data and digital penetration, all of which are getting cheaper, better, and faster. 

The e4m GameOn Online Summit held in Mumbai today gave a sneak-peek into the much-awaited e4m-ESP Indian Online Gaming Landscape 2023 report. The comprehensive report serves as a compass, guiding stakeholders through the vast opportunities and challenges that lie ahead in the gaming sphere. The detailed report is set to be unveiled soon and will be available for public use.  

Gaming has emerged as a powerful force and the industry has experienced remarkable growth in recent years. 2022 has been a game changing year for the gaming industry in India with publishers, streaming platforms, esports organizers, and teams coming together to create a very healthy gaming ecosystem. It is believed that with professional teams training to compete and win in global tournaments, 2023 may well be a crucial year for esports.

The gaming industry in India has created bundles of opportunities for gamers, making them economically independent. Moreover, e-sports has gained substantial popularity in India and is poised for significant growth in the coming years. The emergence of professional teams, increased prize pools, and a growing fan base, esports is expected to become a mainstream form of entertainment and a lucrative industry in India.




Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

Sociowash bags eBay India’s integrated digital mandate

The agency will develop performance media strategies while deploying its video production and influencer marketing verticals

By exchange4media Staff | Jun 8, 2023 2:41 PM   |   1 min read

ebay

Sociowash, an integrated advertising agency, has won the integrated digital mandate for eBay India. The agency will be responsible for enhancing the brand’s overall digital presence by developing creative tactical strategies. The account was won in a multi-agency pitch and will be handled by the agency’s Mumbai team, stated a release.

As part of this strategic partnership, Sociowash will be responsible for creating awareness about the brand and executing campaigns to onboard more sellers onto the platform. The agency will provide end-to-end solutions and services for the brand's creative, performance media, video production, and influencer marketing needs while resonating with its target audience and helping them achieve their business objectives.

Pranav Agarwal, the co-founder of Sociowash, commented on the win, "eBay India is a prominent leader in the e-commerce industry. We are elated to have been chosen by them to manage their digital landscape. Our team's extensive experience and expertise will redefine and elevate the brand's digital positioning. Together, we can create an impact that goes beyond what has been achieved before, setting new benchmarks and adding genuine value for the brand"



Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

Meta Verified now in India

As per reports, the subscription is available for ₹699 monthly on iOS and Android3

By exchange4media Staff | Jun 8, 2023 11:35 AM   |   1 min read

Meta

Meta has said that Meta Verified will now be available in India.

The announcement was made in a post by Mark Zuckerberg who also mentioned that previously verified accounts will maintain the status for free.

Meta Verified in a subscription bundle on FB and Insta.

Subscribers will get a badge indicating their account has been verified with a government ID, extra protection against impersonation, direct access to customer support and more visibility, the company had earlier said.

As per media reports, this subscription is available for ₹699 monthly on iOS and Android3. The company also plans to introduce a web purchase option for ₹599 a month.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

e4m GameOn Summit to explore the future of gaming

The conference will be held on June 9

By exchange4media Staff | Jun 8, 2023 8:55 AM   |   2 min read

GameOn

The gaming market in India is dynamic and is a rapidly evolving ecosystem. Gaming has emerged as a powerful force and the industry has experienced remarkable growth in recent years and continues to expand at a rapid pace. The widespread availability of affordable internet access, affordable data plans, has led to a surge in online gaming, allowing people across the country to access and engage with various gaming platforms. In order to explore the gaming industry further, e4m has announced the third edition of the e4m GameOn-Online Gaming Summit. The conference is set to be held on June 9 in Mumbai. The Presenting Partner of the event is AnyMind, the Growth Partner is Mobavenue while AdScholars is the Co-partner.

At the conference, top leaders from the gaming ecosystem will come together and share insights on key topics under the theme ‘Online Gaming, The Next Big Thing?’. The summit will also give a sneak-peek to the much-awaited e4m-GroupM ESP Report on the Indian online gaming landscape. 

As per industry experts, 2022 was one of the landmark years for the Indian esports and gaming industry, as publishers, streaming platforms, esports organizers, and teams came together to create a very healthy ecosystem. It is believed that with professional teams training to compete and win in global tournaments, 2023 may well be a breakout year for esports.

Click here to see the full agenda: https://e4mevents.com/e4m-GameOn-2023/agenda 

Due to the advancements in technology, the gaming market is only getting bigger. Top leaders and experts from the gaming industry are set to come together under one roof to discuss the opportunities, challenges and the future of the gaming industry in India. The e4m Summit explores the industry’s rapidly growing revenue streams, the drivers of growth, the changing demographics of the gaming universe, and ways brands can seize the opportunity to target consumers.

To ensure you don’t miss out on valuable insights, click here to register: 

https://e4mevents.com/e4m-GameOn-2023/login 




Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

e4m Digital Marketing Leaders Awards: Inaugural edition on June 9

The awards recognize and honour digital marketing leaders for their impactful strategies, campaigns and innovations

By exchange4media Staff | Jun 8, 2023 8:51 AM   |   1 min read

digital marketing awards

Digital marketing leaders play a crucial role in shaping the industry and driving innovation. Their expertise, insights, strategies and vision help others advance their knowledge and understanding of digital marketing practices. These leaders inspire the next generation of marketers and help the industry grow. 

With an aim to honour the great minds in the digital marketing sphere, the exchange4media Group is hosting the first edition of the e4m Digital Marketing Leaders Awards on June 9 in Mumbai. The awards night will celebrate and acknowledge the stars of the domain in India and witness the coming together of some of the best brands, individuals and agencies. Spotify Advertising is the Celebratory Partner of the event while Lemma is the Networking Partner.

e4m Digital Marketing Leaders Awards acknowledges the great leaders who have developed & implemented successful digital strategies, campaigns, and innovations by leveraging new technologies for digital marketing. The awards aim to inspire leaders to stay ahead of the curve and unlock their full potential as digital marketers by felicitating pioneers in the digital marketing sphere.

The star-studded awards night is a perfect opportunity to network with the best and brightest minds from the digital marketing ecosystem, expand knowledge and get an overview of the functioning of several digital marketing agencies.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube

NDTV & Gadgets 360 sign Gaurav Chaudhary as face of their technology content

He will be presenting two weekly technology shows

By exchange4media Staff | Jun 7, 2023 4:14 PM   |   3 min read

NDTV

NDTV and Gadgets360.com (an NDTV Venture), today announced Gaurav Chaudhary aka Technical Guruji as the new face of their technology vertical. To begin with, NDTV and Technical Guruji are coming together to present two weekly technology shows – ‘Gadgets 360 with Technical Guruji’ and ‘Tech with TG’.

The marquee shows are scheduled to go live on Saturday, June 10th on both NDTV 24x7 and NDTV India. Along with this, he will exclusively be present on NDTV’s digital platform gadgets360.com.

Gaurav Chaudhary aka Technical Guruji, is a tech influencer. He will be joining NDTV as the face of their technology content, bringing his expertise, passion, and unique perspective to the media giant's technology news coverage.

On the announcement, Senthil Chengalvarayan, Executive Director NDTV Networks said, “NDTV has been a forerunner in innovative and path-breaking shows that bring great insights into the ever-evolving world of technology. It’s our pleasure to have Gaurav – the renowned and affable Technical Guruji – on board, as part of the NDTV family. We are confident that his expertise, ability to connect with a wider set of audiences, and unique presentation style of such a vast subject will enhance our offering and reinforce our position as a leader in this important genre. Technology is not only part of our daily lives but also an empowering tool for the masses and in this respect, Technical Guruji, Gaurav will bring out the latest, most effective aspects of technology in a format that the masses will be able to relate.”

On the announcement, Vaibhav Sehgal, CEO, Gadgets360.com (Red Pixels Ventures Limited), said, "The amalgamation of the world’s most popular tech influencer with one of the world’s most frequented and credible tech news portal and the pioneers in TV tech programming, is going to change the world of technology forever. Gaurav’s inclusion into the NDTV and Gadgets360 family marks an exciting chapter for us. His immense social-media presence, expertise in simplifying complex tech concepts, and his personality, have made him a household name. His presence will add impetus to our commitment to deliver high-quality & cutting-edge tech content so that we will be at the forefront of delivering the best to our visitors, audience, and readers making sure that we continue to be the go-to hub for technology and gadget enthusiasts.” 

Gaurav Chaudhary aka Technical Guruji said, “I am honored to be a part of the NDTV family. My passion for technology has found another credible platform with which I can reach out to the deepest roots of India, making it more simplified for the masses. I am truly thrilled and believe my presence at NDTV and Gadgets 360 will act as a catalyst for change in the technology space, taking it to new horizons. I’m thankful to all my viewers and subscribers, it’s because of their belief in me that I have reached these new heights. I am excited for this new journey, Chaliye Shuru Karte hain!”

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube