CA B.Com (H)
954 Points
Joined March 2012
In this case CBDT has introduced an Equalization Levy on payment by Indian Resident, for Advertisement services, to a Non-resident service provider.
This is to be paid at 6% from over and above the bill. This means that you personally will have to bear the cost of equalization levy.
There is a separate challan viz. Challan No./ITNS 285 for the same.
Kindly refer the following files for more info:
https://www.pwc.in/assets/pdfs/news-alert-tax/2016/pwc_news_alert_1_june_2016_cbdt_notifies_equalisation_levy_rules_2016.pdf
https://www.ey.com/Publication/vwLUAssets/Template_Equalisation_Levy_Alert.pdf/$FILE/Template_Equalisation_Levy_Alert.pdf
https://www.charteredclub.com/equalisation-levy/