In what appears to be yet another setback for Amazon, Indian tax officials have announced plans to levy a tax on cloud services fees paid by the ecommerce giant to the United States.
The new rules are said to have been communicated to Amazon earlier this month and may result in’significant’ taxation for the company. The company will be required to pay taxes for a period that could extend several years prior to the date of order. The tax authority that issued the new order involving Amazon is not immediately clear. The company claimed that the tax authority’s decision was “without merit” and that it would vigorously defend its position.