Equalisation Levy

USTR Investigation under section 301 of USTR Act on India EL 2020

Income Tax - In June, 2020, the US Trade representative initiated an investigation of India’s 2020 Equalisation levy (EL 2020) under the Section 301 of the Trade Act of 1974 to determine whether India’s EL 2020 is unreasonable / discriminatory and burdens / restricts U.S. commerce. The report was made public on 06 January, 2021....

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Equalization Levy

Income Tax - Equalisation Levy was introduced in India in 2016, with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India....

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Equalisation Levy- An Overview

Income Tax - Equalization levy was introduced by the Finance Act,2016 on certain non resident companies and related activities. The levy was applied @6% on certain 'specified services' such as online advertisement, any provision for digital advertising space or any other facility or services for the purpose of online advertisement if the aggregate amo...

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Equalisation Levy & widened Scope of Digital Taxation

Income Tax - Equalisation Levy was introduced in 2016 with the intention of taxing the digital transactions on certain non-residents businesses. It aimed at taxing business to business transactions. The levy was applied at a rate of 6% on certain specified services such as online advertisement and any provision for digital advertising space or any oth...

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Equalisation Levy 2.0 – Non-payment of tax by major tech giants

Income Tax - Equalisation Levy is a form of direct tax. The primary issue with such type of unconventional taxing is lack of payment getaways and methods, for this reason the payment is withheld at the time of payment by the service recipient....

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Taxation of Digital Businesses

Income Tax - The Government has not held any consultation regarding taxation of digital businesses as such. However, to address the challenges posed by the enterprises who conduct their business through digital means and carry-out activities in the country remotely, the following measures have been taken:...

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Equalization levy of 6 per cent on online advertisers

Income Tax - The Government has introduced equalization levy of 6 per cent on online advertisers. The Finance Act, 2016 had inserted a separate Chapter VIII titled Equalization Levy in order to tap tax on income accruing to foreign e-commerce companies from India. It was provided that a person making payment exceeding in aggregate 1 lakh rupees in a y...

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Equalization Levy- Challan No.ITNS 285 for making Payment

Income Tax - Rules to The Finance Act, 2016 states that with effect from July 1, 2016, equalization levy @ 6% should be deducted by a resident or non-resident (having permanent establishment in India) on the amount of consideration paid or payable to the non-resident not having permanent establishment in India....

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Google Payments: Notification regarding Equalisation Levy

Income Tax - This is to inform you that as per the Notification No. 37/2016: F.No. 370142/12/2016-TPL dated 27 May 2016 read with Finance Act, 2016, Government of India has levied an ‘Equalisation Levy’ on provision of online advertisement services or any other service or facility for the purpose of online advertisement by a Foreign Company provid...

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No Equalisation Levy Applicable in case of Mastercard Asia

Mastercard Asia Pacific Pte. Ltd. Vs Union of India & Ors. (Delhi High Court) - The issue under consideration is whether the equalisation levy will be applicable in case of Mastercard Asia or not?...

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CBDT notifies Equalisation levy (Amendment) Rules, 2020 & Forms

Notification No. 87/2020 [S.O. 3865(E)] - (28/10/2020) - Payment of Equalisation levy. ─ The assessee or e-commerce operator, as the case may be, who are required to deduct and pay equalisation levy, shall pay the amount of such levy, by remitting it into the Reserve Bank of India or in any branch of the State Bank of India or of any authorised Bank acc...

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Revised Jurisdiction Order regarding Equalization Levy

Jurisdiction Order No. 2/2020 - (12/10/2020) - Principal Chief Commissioner of Income-tax (International Taxation), Delhi, in supersession of this office order no. 1/2020 dated 29.05.2020 (F.No. Pr. CCIT(IT)/Delhi/Juris./Eq. Levy/2020-21137), hereby authorise the income-tax authority/authorities specified in Col No.(2) below and having their hea...

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AO working in Pr. CCIT (International Taxation) region is jurisdictional AO for equalisation levy

Notification No. 20/2020-Income Tax [S.O. 1189(E)] - (20/03/2020) - Assessing Officer working in the Principal Chief Commissioner of Income-tax (international Taxation) Region having Jurisdiction in respect of the assessees for the purpose of the Income-tax Act, 1961, to exercise or perform all or any of the powers and functions conferred  on, or, assigned  to  a...

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CBDT Notifies Equalisation levy Rules, 2016

Notification No. 38/2016-Income Tax - (27/05/2016) - Every assessee, who is required to deduct and pay equalisation levy, shall pay the amount of such levy to the credit of the Central Government by remitting it into the Reserve Bank of India or in any branch of the State Bank of India or of any authorised Bank accompanied by an equalisation levy chal...

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CBDT notifies date of Applicability of Equalisation Levy

Notification No. 37/2016-Income Tax - (27/05/2016) - n exercise of the powers conferred by sub-section (2) of section 163 of the Finance Act, 2016 (28 of 2016), the Central Government hereby appoints the 1st day of June, 2016 as the date on which Chapter VIII of the said Act shall come into force....

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Recent Posts in "Equalisation Levy"

USTR Investigation under section 301 of USTR Act on India EL 2020

In June, 2020, the US Trade representative initiated an investigation of India’s 2020 Equalisation levy (EL 2020) under the Section 301 of the Trade Act of 1974 to determine whether India’s EL 2020 is unreasonable / discriminatory and burdens / restricts U.S. commerce. The report was made public on 06 January, 2021....

Read More
Posted Under: Income Tax |

Equalization Levy

Equalisation Levy was introduced in India in 2016, with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India....

Read More
Posted Under: Income Tax |

Equalisation Levy- An Overview

Equalization levy was introduced by the Finance Act,2016 on certain non resident companies and related activities. The levy was applied @6% on certain 'specified services' such as online advertisement, any provision for digital advertising space or any other facility or services for the purpose of online advertisement if the aggregate amo...

Read More
Posted Under: Income Tax |

CBDT notifies Equalisation levy (Amendment) Rules, 2020 & Forms

Notification No. 87/2020 [S.O. 3865(E)] (28/10/2020)

Payment of Equalisation levy. ─ The assessee or e-commerce operator, as the case may be, who are required to deduct and pay equalisation levy, shall pay the amount of such levy, by remitting it into the Reserve Bank of India or in any branch of the State Bank of India or of any authorised Bank accompanied by an equalisation levy challan...

Read More

Revised Jurisdiction Order regarding Equalization Levy

Jurisdiction Order No. 2/2020 (12/10/2020)

Principal Chief Commissioner of Income-tax (International Taxation), Delhi, in supersession of this office order no. 1/2020 dated 29.05.2020 (F.No. Pr. CCIT(IT)/Delhi/Juris./Eq. Levy/2020-21137), hereby authorise the income-tax authority/authorities specified in Col No.(2) below and having their headquarters mentioned in Column (3) and wo...

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Equalisation Levy & widened Scope of Digital Taxation

Equalisation Levy was introduced in 2016 with the intention of taxing the digital transactions on certain non-residents businesses. It aimed at taxing business to business transactions. The levy was applied at a rate of 6% on certain specified services such as online advertisement and any provision for digital advertising space or any oth...

Read More
Posted Under: Income Tax |

Equalisation Levy 2.0 – Non-payment of tax by major tech giants

Equalisation Levy is a form of direct tax. The primary issue with such type of unconventional taxing is lack of payment getaways and methods, for this reason the payment is withheld at the time of payment by the service recipient....

Read More
Posted Under: Income Tax |

Equalisation levy : Tax on Digital Transaction

As per section 165 of Finance Act. 2016, equalisation levy shall be charged at the rate of six percent on the amount of consideration for specified service received or receivable by non-resident from...

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Posted Under: Income Tax |

Equalisation Levy 2.0 – Good or Bad?

Equalisation Levy was introduced via the Finance Act 2016 with effect from 1st June 2016. The EL was levied at 6% on consideration received or receivable by a non-resident for specified services from (i) any person resident in India carrying on business or profession in India or (ii) a non-resident having a PE in India....

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Posted Under: Income Tax |

Equalisation Levy: India’s Answer to Digital Economy

1. Background There has been significant expansion of Information and Communication Technology. With increase of E-commerce and newer concepts like cloud computing, the significance of Digital Economy in global market has increased manifold times. Indian Income Tax Act majorly focused on the physical presence of enterprises for taxing the...

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Posted Under: Income Tax |

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