Equalisation Levy

Equalisation levy-Simplified

Income Tax - What is Equalisation Levy (EL)- Equalisation levy   is a direct tax which is withheld at the time of payment by the service recipient. Conditions for applicability of EL-  Payment should be made to Non-Resident. Aggregate amount of consideration does not exceed Rs 1 lacs in F.Y. What services are covered – w.e.f 01.06.2016 Online Adv...

Read More

All You Need to Know About Equalization Levy 2.0

Income Tax - The scope of the Equalization levy was expanded by the Government of India in the Finance Act, 2020 in order to include the supply of goods and/or services given by an e-commerce operator. The Equalization levy is levied at the rate of 2% on any amount received or receivable by an E-commerce operator from an e-commerce supply of service m...

Read More

Equalisation Levy and Its Effect on E-Commerce Operators

Income Tax - It is not a secret anymore that the ever increasing digitalization of businesses has rendered the tax rules developed to serve the needs of the traditional business models, futile. The digital age has encouraged a phenomenal expansion of businesses, in multiple territories without establishing their physical presence in any country....

Read More

NFT and its mechanism and taxation on NFT’s in India

Income Tax - What is NFT? NFT means Non Fungible Token. Yes that’s it. Goodbye. Oh no it is more than that, first we will understand the meaning of Non Fungible. Well, it means something that cannot be exchanged for another item because of its uniqueness. For Example- If Mr. John has a unique monalisa art it means […]...

Read More

Applicability of Equalisation Levy under Section 165 & 165A

Income Tax - Applicability of Equalisation Levy as per section 165: -Where service provider is a Non Resident. -Service Recipient is Resident in India and Carrying business or profession -Amount of Consideration exceeding Rs 1 Lakhs in a P.Y. -Services used in India for carrying out business or profession.   Applicability as per Section 165A: Ser...

Read More

India & USA agree on a transitional approach on Equalisation Levy 2020

Income Tax - On October 8, 2021, India and United States joined 134 other members of the OECD/G20 Inclusive Framework (including Austria, France, Italy, Spain, and the United Kingdom) in reaching agreement on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy....

Read More

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:...

Read More

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...

Read More

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....

Read More

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...

Read More

TDS not deductible on Payment to Facebook Ireland for Advertisement

Addl. CIT Vs Lenskart Solution (P) Ltd. (ITAT Delhi) - Addl. CIT Vs Lenskart Solution (P) Ltd. (ITAT Delhi) It was claimed by the Assessee that as the Assessee had made the payment to Facebook Ireland Inc. (FII), which admittedly did not have any permanent establishment (PE) in India and, therefore, the payments made to it for advertisement services wer...

Read More

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?...

Read More

CBDT extends due dates for electronic filing of various Forms

Circular No. 15/2021-Income Tax - (03/08/2021) - CBDT extends due dates for electronic filing of various Forms under the Income-tax Act, 1961 On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules, 1962 (Rules...

Read More

Government extends timelines for Income Tax Assessment (Read Notification)

Notification No. 38/2021-Income Tax/S.O. 1703(E) - (27/04/2021) - Central Government has decided to extend the time limits to 30th June, 2021 in the following cases where the time limit was earlier extended to 30th, April 2021 through various notifications issued under the Taxation and Other Laws (Relaxation) and Amendment of Certain Provisions Act, 2020, namely:-...

Read More

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...

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 hea...

Read More

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...

Read More

Recent Posts in "Equalisation Levy"

Equalisation levy-Simplified

What is Equalisation Levy (EL)- Equalisation levy   is a direct tax which is withheld at the time of payment by the service recipient. Conditions for applicability of EL-  Payment should be made to Non-Resident. Aggregate amount of consideration does not exceed Rs 1 lacs in F.Y. What services are covered – w.e.f 01.06.2016 Online Adv...

Read More
Posted Under: Income Tax |

TDS not deductible on Payment to Facebook Ireland for Advertisement

Addl. CIT Vs Lenskart Solution (P) Ltd. (ITAT Delhi)

Addl. CIT Vs Lenskart Solution (P) Ltd. (ITAT Delhi) It was claimed by the Assessee that as the Assessee had made the payment to Facebook Ireland Inc. (FII), which admittedly did not have any permanent establishment (PE) in India and, therefore, the payments made to it for advertisement services were not chargeable to tax in […]...

Read More

All You Need to Know About Equalization Levy 2.0

The scope of the Equalization levy was expanded by the Government of India in the Finance Act, 2020 in order to include the supply of goods and/or services given by an e-commerce operator. The Equalization levy is levied at the rate of 2% on any amount received or receivable by an E-commerce operator from an e-commerce supply of service m...

Read More
Posted Under: Income Tax |

Equalisation Levy and Its Effect on E-Commerce Operators

It is not a secret anymore that the ever increasing digitalization of businesses has rendered the tax rules developed to serve the needs of the traditional business models, futile. The digital age has encouraged a phenomenal expansion of businesses, in multiple territories without establishing their physical presence in any country....

Read More
Posted Under: Income Tax |

NFT and its mechanism and taxation on NFT’s in India

What is NFT? NFT means Non Fungible Token. Yes that’s it. Goodbye. Oh no it is more than that, first we will understand the meaning of Non Fungible. Well, it means something that cannot be exchanged for another item because of its uniqueness. For Example- If Mr. John has a unique monalisa art it means […]...

Read More
Posted Under: Income Tax |

India & USA agree on a transitional approach on Equalisation Levy 2020

On October 8, 2021, India and United States joined 134 other members of the OECD/G20 Inclusive Framework (including Austria, France, Italy, Spain, and the United Kingdom) in reaching agreement on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy....

Read More
Posted Under: Income Tax |

Applicability of Equalisation Levy under Section 165 & 165A

Applicability of Equalisation Levy as per section 165: -Where service provider is a Non Resident. -Service Recipient is Resident in India and Carrying business or profession -Amount of Consideration exceeding Rs 1 Lakhs in a P.Y. -Services used in India for carrying out business or profession.   Applicability as per Section 165A: Ser...

Read More
Posted Under: Income Tax |

Income Tax (CBDT) Due Date Further Extended on 03.08.2021

CBDT vide circular No. 15/2021 dated 03.08.2021 Extended time lines for electronic filing of various Forms under the Income-tax Act, 1961 in view of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms and considering the non-availability of the utility for e-filing of certain Forms. Forms fo...

Read More
Posted Under: Income Tax |

CBDT extends due dates for electronic filing of various Forms

Circular No. 15/2021-Income Tax 03/08/2021

CBDT extends due dates for electronic filing of various Forms under the Income-tax Act, 1961 On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules, 1962 (Rules), Central Board of Direct Taxes (CBDT) ...

Read More

Direct Tax Updates for June 2021 with Video

Global Minimum Tax, Equlization Levy & Section 195, Section 9B & Section 45(4), New Judgements, Filing ITR & Tax Audit Report; Section 194Q & Section 206AB, New Registration of Trusts, Section 148 Notices & TDS/TCS Changes – vide Finance Act, 2021 Global Minimum Taxation 2 Pillar Approach – Pillar 1 Scope – 1. Mu...

Read More
Posted Under: Income Tax |

Browse All Categories

CA, CS, CMA (6,014)
Company Law (8,224)
Custom Duty (9,152)
DGFT (4,765)
Excise Duty (4,685)
Fema / RBI (5,127)
Finance (5,533)
Income Tax (40,727)
SEBI (4,425)
Service Tax (3,933)

Search Posts by Date

May 2022
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031