Refund/Credit of Equalization Levy

Hi All,
I have a query w.r.t credit of Equalization Levy deducted by the company.

On the basis of provisions of Equalization Levy, we have deducted the amount equivalent to 6% while making payments to the foreign vendor. How can foreign vendor claim credit or refund of EL in it's own country because there is provision of issuing withholding tax certificate unlike in TDS.
Appreciate your early response
Replies (1)

There is no mechanism for a foreign vendor to obtain a withholding tax certificate for the Equalization Levy, nor is there a straightforward path to claiming it as a foreign tax credit abroad, as most countries do not recognize this levy as a creditable "income tax." Foreign vendors are often unable to claim a credit or refund for the EL in their home country due to its classification as a transaction-based levy rather than a tax on income.

 

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