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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. 

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.