28 June 2016
Dear Experts,
In budget, new concept of equlisation of levy is introduce on receipt of online advertisement related services "specified services"
i want to know whether equlisation levy is regarding to like TDS (195 section) or related to service tax.
29 June 2016
It is withholding tax under income tax. In order to tap tax on income accruing to foreign e-commerce companies from India, the Finance Act 2016 provides a person making payment to a non-resident (who does not have a permanent establishment) exceeding in aggregate Rs. 1 lakh in a year will withhold tax at 6 per cent of gross amount paid, as equalisation levy.
The levy will only apply to business to business transactions.
CAclubindia
