Taxation of Digital Economy by K Vaitheeswaran

Digital Economy from being a mere extension of the brick and mortar space, has evolved into a full-fledged, vibrant economic space where goods and services are transacted digitally without the need for physical presence. Identifying the inadequacy of existing framework in addressing the challenges in taxing the digital economy, the OECD has highlighted three key characteristics of the digital economy, namely, scale without mass, intangibles and the role of data and user participation. The taxation of the Digital Economy addresses this dilemma in an authoritative manner. The author captures the entire canvas of the digital economy and discusses in great detail its functioning and various aspects encompassing e-commerce, digital payments, virtual showrooms, virtual currencies, Al, big data, and data analytics. The author brings out tax challenges by providing an in-depth analysis of how the revenue generation activity takes place across the jurisdictions, the associated issue of establishing a PE and the relevance of a virtual and digital PE in the context of taxing rights. The concepts and implications of SEP, OIDAR services, the export of services, reverse charge mechanism, and Equalisation Levy, in the context of the digital economy, have been described with insightful Indian and International case law. The chapters on Digital Taxes – International Experience, Unified Approach, and Possible Solutions throw light on the evolving course of action in this space. The book will be of value to lawyers, judges, chartered accountants, tax professionals, technocrats, policy-makers, students & members of the public.