India has seen mega investment announcements by the Big Tech firms Google, Microsoft and Amazon, and there is a rush to build cloud and AI infrastructure. The industry bodies representing these firms and data centre operators have sought for more favourable tax and regulatory measures that would ensure long-term policy certainty. The three Big Tech firms alone have announced investments worth $70 billion in India in the last few months. These firms have made several representations to the government to clearly spell out whether data centres are attributed by tax authorities as ‘permanent establishment’ for the cloud service providers (CSP).“Standard hosting and colocation services provided by Indian data centre operators to foreign cloud service providers are increasingly being examined as if they create a fixed place permanent establishment of the foreign CSP. This creates double taxation risk and profit attribution disputes even when the Indian data centre operator is already taxed in India on arm’s length margins,” says Ashish Aggarwal, Vice President and Head of Public Policy, Nasscom.Nasscom (National Association of Software and Service Companies) has sought a clear statutory clarification that procuring hosting or colocation services from an Indian data centre operator does not create business connection or permanent establishment… Read MoreYourStory RSS Feed
Home Uncategorized Budget 2026: Industry seeks reduction in data centre related tax and regulatory...
