Indian online gaming firms relocating to avoid tax will be 'risky' - official | Tech News

Indian online gaming firms relocating to avoid tax will be 'risky' - official

INDIA-TAX-GST:Indian online gaming firms relocating to avoid tax will be 'risky' - official

By:REUTERS
| Updated on: Jul 14 2023, 06:26 IST
Safe online payment tricks: Know 5 easy ways to keep your money safe on UPI, Net banking
The government on Tuesday announced the levy on the $1.5 billion online gaming industry.,
1/6 Do you use Unified Payment Interface (UPI) linked payment-making applications like Google Pay (GPay), Paytm, PhonePe, among others? The process of making online payment via these apps is simple, however, sometimes even a simple mistake like wrong click, number, among others can cause you huge monetary loss. Here are some of the safety tips which you should consider while making UPI payments. (Bloomberg)
The government on Tuesday announced the levy on the $1.5 billion online gaming industry.,
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The government on Tuesday announced the levy on the $1.5 billion online gaming industry.,
3/6 Do not share your PIN: You should never share your PIN with anyone. Sharing your PIN makes you vulnerable for frauds as anyone can access your phone and transfer the amount. In case you feel that your PIN has been exposed, you should change it immediately. (Saumya Khandelwal/HT PHOTO)
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4/6 Do not click on unverified links or attend fake calls: Lots of fake messages containing links of some unverified keeps on popping in your inbox. You should avoid clicking on such links as it can cause you huge financial losses. You should also avoid picking up fake calls. The caller pretends to be calling from your bank or some other organisation and can ask you for your details like PIN, OTP, etc. Hackers usually share links or make calls and ask users to download a third-party app for verification. It can be noted that banks never ask for PIN, OTP or any other personal details. (Reuters)
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5/6 Keep updating UPI App regularly: Every application requires an update and each update brings better features and benefits. You should always keep updating the UPI payment app to the latest version. (Unsplash)
The government on Tuesday announced the levy on the $1.5 billion online gaming industry.,
6/6 Avoid using multiple payment applications: You should avoid keeping multiple payment applications in your phone and should install only the trusted and verified payment applications from the PlayStore or App Store. (Bloomberg)
The government on Tuesday announced the levy on the $1.5 billion online gaming industry.,
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The government on Tuesday announced the levy on the $1.5 billion online gaming industry., (Pixabay)

Indian online gaming firms planning to relocate overseas to avoid a new 28% tax on the sector run the risk of violating the country's foreign exchange laws, Vivek Johri, head of the indirect taxes' department, said on Thursday.

New Delhi does not plan to implement the tax retrospectively, he said, in response to speculation it could do so.

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The government on Tuesday announced the levy on the $1.5 billion online gaming industry, which has surged in popularity in recent years, attracting foreign investment.

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The industry has warned of job losses and reduced earnings, while analysts have said some may explore relocating to other countries.

Online gaming companies relocating to avoid paying tax on the revenues they collect from customers is not going be easy, Johri, chairman of Central Board of Indirect Taxes and Customs (CBIC), said.

"It is going to be a risky proposition," he said. "It's actually not legal to remit money (to a foreign country) in the name of online gaming, so they are going to use some other (way) and that will further expose them to legal action."

Overseas online gaming companies providing services in India will also have to abide by the regulations being formulated by India's electronics ministry, which may mandate local registration, he said.

Despite the impact of the higher tax on playing costs, gamers who can afford to pay more and are hooked on such games will continue to participate, Johri said.

He said the new tax would come into force after India's parliament ratifies the changes in coming weeks.

 

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First Published Date: 14 Jul, 06:18 IST
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