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Income Tax - After 3 years of introducing the concept of ‘Significant Economic Presence’ (SEP) in the domestic tax laws, the Indian tax authorities have notified the thresholds for applicability of the SEP provisions. As per the notification 41/2021 dated 03 May 2021, the payment threshold in respect of any goods, services or property carried out ...
Read MoreIncome Tax - Introduction: India first introduced an equalisation levy in 2016 and 2020 Budget substantially extended the scope of the equalisation levy. Besides taxing online advertisement services, it was also levied on the consideration received by e-commerce operators crossing the prescribed threshold, for supplies to Indian residents, persons usi...
Read MoreIncome Tax - Q.1 What is equalization levy (EL)? Ans: This is a tax leviable on consideration received or receivable by a non-resident for any specified service such as online advertising, any provision for digital advertising space or any other facility or service for online advertising @ 6% from : i) A person resident in India and carrying […...
Read MoreIncome Tax - Equalisation levy: Meaning and Purpose of Equalisation levy: In this digital era, business and its operations are not restricted to geographical boundaries. With the emergence and involvement of Internet into businesses, area and locations have become irrelevant. Businesses have free access to various markets. The traditional structure of...
Read MoreIncome Tax - Equalisation Levy 1.0 Equalisation Levy was introduced by the Finance Act, 2016 with effect from 1st June 2016. The equalisation levy was levied at the rate of 6% of the amount of consideration for any specified service received or receivable by a person, being a non-resident from— (i) Any person resident in India carrying on business ...
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. 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 MoreNotification 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 MoreJurisdiction 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 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...
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Notification No. 38/2021-Income Tax/S.O. 1703(E) - 27/04/2021
