New Delhi (Sputnik) — The Income Tax Appellate Tribunal (ITAT) heard a case dealing with the "characterization" of the payment made by Google India to Google Ireland Ltd with respect of the purchase of advertisement space for resale to advertisers in India under the Google Adwords program distribution agreements.
Google India in a press communique has said that it will challenge the ruling of the ITAT in the High Court.
"We comply with all tax laws in India and pay all applicable taxes. We will file an appeal in the High Court as this ruling is an inaccurate representation of our business operations in India. The order is also a clear departure from previous judgments on the issues and is not in line with India's double taxation avoidance agreement," a Google communique said.
An online branding expert said that the Google Adwords case and the future course of the matter will impact the future of online advertising in India.
"We are keeping a keen watch on the development. The branding and Online Communication community along with our clients are anxious as the decision in the case will have an impact on the prices as well as practice of multinational giants in India. It will also impact the entry of new players in the field. We can just say, its an interesting time," Shadab Khan, Director LCS Infotech, a leading online advertising and tech consultant in India told Sputnik.