Amazon analysing costs for registering Prime Video and other companies in India
- Sep 30, 2020 | Divita S Gupta
eCommerce giant Amazon is evaluating the cost of registering some of its entities like Amazon Prime Video, Amazon Music, and Audible in India. While these services are already available in the country, they are not registered as separate entities but exist under the Amazon brand umbrella. The question is, if Amazon registers its products as separate entries, they might fall under the purview of the 2% equalisation levy, which is already a cause for concern among companies with an e-commerce business model. The first instalment of the equalisation levy was due in July but several e-commerce companies had requested the Centre for more time.
Amazon is evaluating the costs of registering their in house brands as separate entities as they have to pay GST and other taxes for these brands at present. Registering businesses in India is a good move for foreign players, especially since several current and forthcoming regulations including the equalisation levy require India-based registrations.