The Indian government has clamped down on making sure that overseas firms are paying the correct taxes to operate in the country.
Tinder is among several major companies that have been identified as allegedly not paying indirect tax. Also included in the list are Zoom, Tumblr and the Microsoft-owned Skype.
Such companies are required to register as Online Information Database Access and Retrieval service providers and pay integrated goods and services tax at 18%. The companies that don’t have a physical presence in India can appoint a representative to register on their behalf.
The government found that most companies don’t pay because they are simply unaware of the tax. Companies that fail to comply with the legalities are vulnerable to being fined.
A Zoom spokesperson said that the company has an entity in India which is “registered under, and is compliant with the India GST regulations”.
Prior to setting up Zoom India, the video conference service provider “issued invoices to Indian businesses and, according to Indian regulations, such businesses are required to pay GST”.
Tinder’s Indian division did not respond with a comment when contacted by Bloomberg Quint.
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