#equalisation levy

The Equalisation Levy was introduced by the Finance Act, 2016 on consideration received by non-residents for online advertisement services, digital advertising space, and related online advertising facilities, at the rate of 6%. The Finance Act, 2020 expanded its scope by imposing a 2% levy on consideration received or receivable by non-resident e-commerce operators for e-commerce supply or services made, provided, or facilitated on or after 1 April 2020. The levy applied to online sales, online services, and transactions facilitated through digital platforms, subject to specified thresholds and exclusions, including cases involving permanent establishments in India and income taxable as royalty or fees for technical services. Income chargeable to Equalisation Levy was exempt under Section 10(50). The Finance (No. 2) Act, 2024 introduced a sunset clause, providing that Equalisation Levy on e-commerce supply or services would not apply to consideration received or receivable on or after 1 August 2024. Consequently, the provisions of Equalisation Levy are not applicable from Assessment Year 2026-27 onward.

The 2 per cent equalisation levy imposed by India on digital players will continue for US companies until a global agreement on taxing multinational enterprises (MNEs) comes into effect or March 31, 2024, whichever is earlier. The United States, on the other hand, has committed to withdrawing its threat of retaliatory trade action against India, according to an agreement reached between the two countries on Wednesday.

New Delhi and Washington have agreed to count the benefits of a global agreement on taxation from the next financial year. However, the benefits would actually accrue once the global pact comes into effect or March 31, 2024, whichever is earlier, in the form of credit, according to the reading of the pact by experts.

USTR proposes retaliatory tariffs against Indian goods over 2% digital tax

In retaliation to India’s digital tax (2 per cent) on foreign technology majors, the United States has proposed additional tariffs on a slew of Indian imports including basmati rice, sea food, jewellery, bamboo, semi-precious stones and pearls, among others. A tariff of up to 25 per cent ad valorem on aggregate level of trade has been proposed, with an aim to mop up around $55 million, which is…

भास्कर एक्सप्लेनर: गूगल टैक्स पर भारत-अमेरिका के बीच छिड़ सकता है ट्रेड वार, बीते साल गूगल ने सरकार को 604 करोड़ रुपए दिए थे

Hindi News Tech auto India US Google Tax | India US Trade War On Google Tax; What Is Equalisation Levy In India? Or Digital Transactions Ads से है परेशान? बिना Ads खबरों के लिए इनस्टॉल करें दैनिक भास्कर ऐप नई दिल्ली39 मिनट पहले कॉपी लिंक देश में बिजनेस करने वाली बाहरी कंपनियों को 2% गूगल टैक्स देना पड़ता है अमेरिका ने भारत समेत दूसरे देशों में जाने वाले आइटम पर टैक्स बढ़ाने की बात…