29 March 2017
I want to know that once the equalisation levy is deducted @6% and same is also deposited to the central government within the due date, then who will get the credit of the amount deducted and how? Also as per section 10(50) if equalisation levy is deducted then the income will be exempt. Now my question is whose income will be exempt because already income of non resident is not taxable in india as it is not having any PE in india, so how income tax of India can exempt the income of NR? Please clear my doubts and thanks in advance.
29 March 2017
Nobody will get credit of the amount deducted. The equalisation levy is levied in view of the payment is not taxable in India, so to ensure that the payment should not fall again within the ambit of tax it is exempted.
CAclubindia
