India’s Gambling Sector Booming But Primus Partners Report Reveals Anomaly
India Can Be The Next Online Gambling Hub: But There’s A Catch…
A report titled “Online Gambling in India: The Taxes Quandary,” by Primus Partners, highlighted the importance of having India properly regulating online gaming, stating that this will not only give rise to many economic openings in the sector but will also address several social issues.
The Union Budget 2023-24 made several promising announcements for the sector, addressing the industry’s persistent request to include the deduction of losses when calculating the gains from online gaming, for the purposes of income tax.
Nonetheless, a pertinent issue was raised by the study relating to the Tax Deducted at Source (TDS) on online video games, as recommended in the Union Budget.
The Issue Highlighted
The report stated that the issue had arisen as a result of changes made to section 194B. Online gaming is currently included under this section as of April 1, 2023. However, the introduction of a separate provision for online gaming, known as section 194BA, from July 1, 2023, has created an anomaly.
In order to prevent room for misinterpretation, the report recommended to streamline the applicability of the amendments for “online games” and establish one effective date of April 1, 2023. Otherwise, it was proposed to maintain the existing tax regime from April 1, 2023, to June 30, 2023.
According to the report, the recurrent developments may place a financial burden on many smaller-scale gaming companies since they would amplify industry costs and give rise to unnecessary expenses that will be difficult for such smaller-scale enterprises to take on.
The report also cited evidence from territories where the sector has flourished to show that the Gross Gaming Revenue tax model allowed the proliferation of the industry.
Main Recommendations From The Report
According to the report, imposing Goods and Services Tax on the entire value would deviate from conventional ways and also make the sector unfeasible. It recommended that the GST Council should take into account the recent amendments in Tax Deduction at Source (TDS) on income from online gaming prize pools which currently have no ceiling.
Of course, for this to be even remotely possible, proper taxation, airtight regulations and overall monitoring measures need to be put into place. Only if such criteria are met will the system be an airtight and successful one. Despite the fact that this is by no means an easy feat, it’s not unachievable either. No doubt players will be waiting in anticipation, eager to register at their favorite casino through NoDepositHero.com.
The report further stated that the online gaming industry in India is experiencing rapid growth and is expected to grow at a CAGR of approximately 27% throughout the following five years. It also highlighted this sector’s potential to contribute extensively to India’s GDP and open up over one million new job opportunities by 2030.
The Need For A Solid And Empowering Regulatory Framework – Primus Partners’ CEO
Nilaya Varma, Primus Partners’ Chief Executive Officer, stated that in order to ensure “a responsible, transparent and safe environment for everyone” a solid and empowering regulatory framework for the dynamic sector of online gaming is necessary. He further highlighted the enormous potential of the online gaming sector, which depends very much on the provision of a growth-friendly tax regime and a solid regulatory framework provided by the government.
