How is Google paying tax but Facebook not: HC asks govt

September 26, 2014 20:08

The Delhi High Court today questioned why Facebook Inc is not paying any service tax when Google is doing so and directed the Centre to file a "better affidavit" on the issue.

"How is Google paying (service tax), but not Facebook? How is Facebook exempted? We are finding it difficult to understand," a bench of justices Badar Durrez Ahmed and Siddharth Mridul said.

The bench also asked whether the government was "alive" to the issues of sale of data by social medial sites as well as the service of targeted advertisement provided by them.

"Why don't you know all these? Are you alive to these things or is it beyond your comprehension," it asked after advocate Virag Gupta, appearing for former BJP leader K N Govindacharya, raised these issues before the court.

The government, represented by advocate Sanjeev Narula, said that Facebook Inc has no office here while Facebook India has a office in a Special Economic Zone from where it is exporting services and thus, they are exempted from paying service tax.

The bench, however, sought information from the government on what are the remittances being made to Facebook from India and whether the transactions between the website and various Indian companies are in the nature of services.

"Find out what they (transactions) are? Whether they are chargeable and whether the services provided, if any, are by entities in India or from outside. File a better affidavit on the service tax as well as on the social media guidelines," the court said in the pre-lunch proceedings.

« Back to LIVE

TOP STORIES

IPL PIX: Gill, Sudharsan's tons power GT to 231/3 against CSK

Sai Sudharsan matched his skipper Shubman Gill stroke for stroke as the two openers notched destructive centuries to propel Gujarat Titans to 231 for three against Chennai Super Kings in the Indian Premier League in Ahmedabad on Friday.

Factory output slows marginally to 4.9% in March

India's industrial production growth slowed marginally to 4.9 per cent month-on-month in March 2024, mainly due to poor show by the mining sector, according to official data released on Friday. The factory output growth, measured in...

Erasmus to lead Namibia in T20 World Cup

All-rounder Gerhard Erasmus will lead Namibia in the upcoming T20 World Cup to be held in the Americas next month.

In Pictures - Kejriwal reaches home after 50 days

Being released from Tihar jail after 50 days on a 21-day interim bail granted by the Supreme Court, Delhi Chief Minister Arvind Kejriwal received a warm welcome from his family when he reached his residence on Friday evening.

At no stage did I refuse to give dope sample: Bajrang Punia

Olympic medallist wrestler Bajrang Punia has claimed that he refused to provide urine samples during the selection trials in Sonepat in March because the dope control officials failed to furnish adequate proof that they were carrying...