In a setback for Google India, the Bengaluru bench of Income Tax Appellate Tribunal (ITAT) on Friday confirmed royalty taxation for Google’s Adwords programme, reported Taxsutra.

“The bench of tribunal in case Google India Private Ltd had upheld royalty taxation for the Adwords programme, in the TDS default proceedings for AYs 2007-08 to AY 2012-13,” said Taxsutra.

The ruling was delivered by ITAT bench of Sunil Kumar Yadav and Inturi Rama Rao.

Earlier, ITAT refused to entertain Google India’s request that Google Ireland’s appeal (relating to taxability of the same payment for Adwords programme by Google India) should be decided first because implications (u/s 40(a)(i) and 201) in the hands of Google India would only follow suit once taxability of Google Ireland was decided.

Google AdWords is an online advertising service developed by Google, where advertisers pay to display advertising copy, product listings, and video content.

First Published:May 11, 2018 4:30 PM IST