Karnataka HC refers Google case back to ITAT
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Karnataka HC refers Google case back to ITAT
Shilpa Phadnis / TNN / Apr 24, 2021, 09:31 IST
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BENGALURU: In a relief to Google India, the Karnataka high court has set aside the Income Tax Appellate Tribunal (ITAT) order related to the Adwords platform (now called Google Ads). It asked the tribunal to hold a fresh hearing at the earliest.
The Adwords platform allows advertisers to create product listings and display advertisements.
The ITAT had held that payments aggregating to Rs 1,457 crore made by Google India to its parent firm Google Ireland between 2007-08 and 2012-13 are taxable as royalty. It had held that the payments constitute royalty under the Indian law, as well as under the India-Ireland Double Tax Avoidance Treaty (DTAA), and therefore are subject to withholding tax.