Income Tax : India introduced a 6% and later 2% digital tax to capture revenue from non-resident tech giants operating without a permanent esta...
Income Tax : A clear analysis of India’s 6% and 2% digital tax framework, its legal basis under the Finance Acts of 2016 and 2020, and its gl...
Income Tax : Explains how India introduced the Equalisation Levy to tax foreign digital companies without physical presence. Highlights its imp...
Income Tax : Examines whether India’s Equalisation Levy effectively addresses digital taxation challenges, highlighting its strengths, struct...
Income Tax : Equalisation Levy on online ads and e-commerce ends from AY 2026-27. Know scope, rates, compliance, exemptions, and due dates unde...
Income Tax : Key changes to Equalisation Levy from August 2024: the 2% tax on e-commerce transactions will be removed. Learn about the new prov...
Finance : Learn about the extension of India-USA agreement on Equalisation Levy 2020 until June 30, 2024, amidst OECD/G20 negotiations on di...
Income Tax : On October 8, 2021, India and United States joined 134 other members of the OECD/G20 Inclusive Framework (including Austria, Franc...
Income Tax : The Government has not held any consultation regarding taxation of digital businesses as such. However, to address the challenges ...
Income Tax : The Government has introduced equalization levy of 6 per cent on online advertisers. The Finance Act, 2016 had inserted a separate...
Income Tax : ITAT Jaipur held that equalization levy not applicable as role of the assessee is merely conduit between the entity carrying out t...
Income Tax : Addl. CIT Vs Lenskart Solution (P) Ltd. (ITAT Delhi) It was claimed by the Assessee that as the Assessee had made the payment to F...
Income Tax : The issue under consideration is whether the equalisation levy will be applicable in case of Mastercard Asia or not?...
Income Tax : Centralised Processing of Equalisation Levy Statement Scheme, 2023 shall be applicable in respect of processing of Equalisation Le...
Income Tax : CBDT extends due dates for electronic filing of various Forms under the Income-tax Act, 1961 On consideration of difficulties repo...
Income Tax : Central Government has decided to extend the time limits to 30th June, 2021 in the following cases where the time limit was earlie...
Income Tax : Payment of Equalisation levy. ─ The assessee or e-commerce operator, as the case may be, who are required to deduct and pay equa...
Income Tax : Principal Chief Commissioner of Income-tax (International Taxation), Delhi, in supersession of this office order no. 1/2020 dated ...
Several non resident e-Commerce operator has started, providing the service through digital media, without having physical presence in India. Because of which, India Tax department were not able to tax such transaction due to non-availability of PE in India. Government of India by Finance Act 2020, has introduced new provision 01.04.2020 What provision says, in […]
Over the decade, use of technology has drastically changed the global business structure by creating immense transformations in the way companies globally conduct their businesses. Technology has expanded the outreach and connectivity of the businesses and with the use of digital space, companies located outside India are able to run their businesses in digital domain […]
Section 163 of Finance Act 2016: This chapter extends to the whole India except J&K. Section 165 (1) of Finance Act 2016: Charge of Equalisation Levy (EL) Equalisation Levy @ 6% applicable if payment for specified services (#) received / receivable by Non-resident from- a) A person resident in India & carrying Business or Profession […]
Article explains Taxation of Online Advertisement Prior to Equalisation Levy, Introduction of Equalisation levy at 6 % for online Advertisement, Exception to Equalisation levy on Online Advertisement, Equalization levy at 2% on E- Commerce Transaction, Exception to Equalisation levy on Ecommerce transaction, Exemption under Income Tax Act for Transaction subject to equalisation levy and TDS […]
Meanwhile in 2016, India had introduce tax in form of Equalisation levy only for advertisement service rendered by non resident (likes of FB, twitter, etc) to resident of India which is extended now to other E-Commerce operator for host of service rendered to resident of India and in specified cases to non resident also.
Logic for the introduction of Equalisation Levy In India an assessee is taxed if that assessee has permanent establishment in India. If the assessee does not have a permanent establishment in India then he would not be taxable in India. Many companies provide digital services to resident of India without being having a permanent establishment […]
Post liberalization, businesses were no longer restricted by their territorial limitations and thus a global market had been created for various kinds of goods and services. In the contemporary scenario, businesses have come much further to conduct commercial activities across countries without even having a physical presence. This has provided an unfair advantage to the […]
New equalisation levy may be applicable on your business and be a cost for your business. When it comes to services, the extended scope will cover entities providing online services such as:
Neutrality, efficiency, certainty & simplicity, effectiveness & fairness, flexibility and equity are basic fundamental principle which must reflect in any tax policy. The Committee while recommending Equilisation Levy lay much emphasis on Neutrality which is so noted in the Committee’s Observation in para 38 of the Report:
After the amendment legal position related to equalisation levy has changed drastically. Now, the non-resident e-commerce operators are required to withhold at the rate of 2% of the gross amount received/receivable in lieu of e-commerce supply and service.
