Google India, subsidiary of Google International, USA, has sought an advance ruling on whether it would be liable to pay service tax for selling ad space.


According to Business Standard, Google Online India Private Ltd (GIPL), a wholly owned subsidiary of Google International LLC, USA, had sought an advance ruling on whether it would be liable to service tax.

The advance ruling procedure in India is similar to that of a civil court. But no appeal is allowed for the judgements passed unless the law is changed.

Foreign Companies can apply for advanced rulings for matters related to service tax. This holds true for joint ventures as well as wholly owned subsidiary like Google.

Google USA charges the advertisers with respect to the sale of space slots on Google.

According to the report, “Google India is planning to adopt a similar model in India. It will engage in direct selling, syndication partnerships and reseller deals with agencies. It will also engage in marketing and promotional activities to sell space slots on the Google sites”.

The Commissionerate of Service tax is examining if there had been such cases earlier and the authority is expected to give its ruling this month.

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