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Facebook India’s Profits Surge 40 Per Cent To Rs 57 Crores In FY18 Even As Company Faces Greater Tax Scrutiny
Facebook Co-founder and CEO Mark Zuckerberg. (Photo by David Ramos/Getty Images)
Facebook India’s profits have seen a sharp jump of around 40 per cent to Rs 57 crores in the financial year ending March 2018, reports ET Tech. The figure is reflective of the rapid adoption of social media in India, as technology behemoths like Facebook and Google corner the online advertising space.
Total revenue for Facebook operations in India grew by 53 per cent to Rs 521 crore. The company’s revenues include sums earned through its messaging application WhatsApp.
Even amid the positive news, the company’s financial statement mentioned that it continues to face tax problems in India, with a number of pending disputes relating to income tax, VAT, sales tax, customs, etc.
However, some experts are sceptical about the correctness of the figures. Ashok Maheshwary and Associates partner Amit Maheshwari stated, “This may not accurately reflect the revenues of Facebook from India on account of online advertising,”
The financial statement itself reveals that the figures only include services provided by the India division to the US company. The Indian wing itself is operated through a Singapore-registered subsidiary.
The Indian government has been keen to tax the growth of major players in the digital advertising space and has over the last two years imposed a 6 per cent tax, the equalisation levy, on online advertisers' domestic operations. A majority of the collections of the tax come from Google, Facebook and LinkedIn.
India has also joined the cohort of countries globally which seek greater transparency on the operations of multinational corporations, including information about global revenues, employee numbers and taxes paid in different jurisdictions.
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