equalisation levy in India

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equalisation levy in India

• India has been one of the fore-runners in
  adopting many BEPS action plans and the digital
  taxation was no exception. In year 2016, India
  introduced 6 equalisation levy ( let us consider
  this as version 1.0) on digital specified
  services received by a non-resident not having a
  Permanent Establishment (PE) in India.
• In year 2020, India has introduced a version 2.0
  of the equalisation levy, which extends the scope
  of such levy to non-resident e-commerce operators
  providing an e-commerce supply or a service
  companies that are not covered by the
  Equalisation levy 1.0 and whose turnover is more
  than INR 20 million (USD 260,000).
• Further, amendment was brought in the year 2021
  with Union Budget 2021 (with retrospective
  effect) where the applicability of levy and the
  definition of e-commerce supply have been further
  clarified/ expanded, giving it an avatar of
  Equalisation levy 2.1.

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equalisation levy in India
We at TransPrice help non-residents doing
business with Indian business houses or customers
in analyzing testing their business models for
applicability of Equalisation Levy (Digital Tax)
and if applicable, post application quarterly and
annual compliances and if not applicable,
documenting the same. TransPrice specializes in
assisting non-residents engaged in business
activities with Indian entities or customers in
navigating the complexities of the Equalisation
Levy (Digital Tax). Our experts thoroughly
analyze and evaluate their business models to
determine the applicability of this tax. For
those businesses that fall within the purview of
the levy, we provide comprehensive support for
quarterly and annual compliance. Alternatively,
if the Equalisation Levy is not applicable, we
ensure proper documentation to substantiate the
exemption. Our services encompass tax dispute
resolution in India, addressing income tax
disputes, and strategic domestic tax planning to
optimize your tax position.
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