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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....
Read MoreIncome Tax - 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...
Read MoreIncome Tax - 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....
Read MoreIncome Tax - 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...
Read MoreIncome Tax - Prologue With blistering digitalisation, the concern of base erosion escalated further which reflected in BEPS Project, endorsed by G-20 and OECD, to which India was an active participant. Out of three options, suggested in report on Action 1 of BEPS Project, to address tax challenges of digital economy India adopted Equalisation Levy in ...
Read MoreIncome 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:...
Read MoreIncome 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...
Read MoreIncome 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....
Read MoreIncome 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...
Read MoreMastercard 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?...
Read MoreNotification 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...
Read MoreNotification 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...
Read MoreNotification 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....
Read MoreNA - (21/03/2016) - The Committee on taxation of E-Commerce examined the tax issues arising from the new business models employed in the digital economy, in particular issues relating to tax nexus rules under existing law and tax treaties, characterization of payments made for services and facilities provided primarily...
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Mastercard Asia Pacific Pte. Ltd. Vs Union of India & Ors. (Delhi High Court) -
