India shifts international tax deal stand with an eye on revenue

India and other developing countries were fighting to include companies with at least Euro 1 billion in revenues as against the final proposal of Euro 20 billion revenues and a profit margin above 10%

India signing on the proposal, along with 129 countries, to bring only top 100 global companies under the digital tax deal has come as a surprise as New Delhi was so far pitching for a much lower threshold to cover around 5,000 international firms. 

But negotiations at the Organisation for Economic Cooperation and Development (OECD) finally saw India join the global pact for a multilateral solution to tax large digital companies like Google, Facebook and Netflix to ensure that these MNCs pay more taxes in countries where they have customers or users than from where they operate.

The proposed solution consists of