If India's new IT rules go into effect, Twitter, Google, and Facebook may be forced to pay greater taxes. 

The corporations designated nodal officers to comply with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which took effect on May 26.

According to analysts, the tax department may believe that employing a nodal or compliance officer in India suggests that US-based corporations have a permanent presence in the nation. 
According to the article, Big Tech might be requested to pay taxes on income earned in the country of at least 25% but as high as 42 percent.
The businesses have been exploring for ways to avoid the tax implications. According to the Financial Times, Permission to outsource compliance responsibilities was also denied the businesses.
"This request has been flatly denied by the administration. Our client was instructed that the nodal officer must be either a part of the US Corporation or a distinct entity and that this position cannot be outsourced or filled by a temporary or consulting employee "According to the newspaper, a lawyer stated.

According to a few newspaper reports, Twitter's intermediary status in India has been suspended due to the company's failure to comply with new IT requirements by failing to hire key officers despite multiple reminders. This implies it will be held accountable under the Indian Penal Code and the Information Technology Act for any content posted on its platform.

Surprisingly, Twitter was identified as a party in the Uttar Pradesh Police's First Information Report (FIR) on a tweet that contained false information regarding an attack and was criticised by users for adding a sectarian tone to a minor quarrel.

What does the word "intermediary status" imply?

“Intermediary status is not a registration provided by the government,” according to the digital rights group Internet Freedom Foundation.

An intermediary, according to Section 2 (1) of the Information Technology Act, is a person or entity that receives, stores, and transmits information or provides a service for information transmission. This covers telecom, network, and internet service providers, as well as search engines, online payment sites, online auction sites, online marketplaces, and even cyber cafes.
The administration has not stated whether Twitter will lose its intermediary status or not.

Currently, the Indian government has placed an equalisation levy, or Google tax", on such companies - 6 percent on advertising revenue and 2 percent on digital transactions.