{"id":330879,"date":"2025-03-26T15:06:02","date_gmt":"2025-03-26T09:36:02","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=330879"},"modified":"2025-04-01T12:47:31","modified_gmt":"2025-04-01T07:17:31","slug":"equalisation-levy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/equalisation-levy\/","title":{"rendered":"Equalisation Levy"},"content":{"rendered":"<p><strong>News- <\/strong>The government has proposed the abolition of the 6% Equalisation Levy on online advertising in the Finance Bill 2025. This move will benefit advertisers on digital platforms like Google, X and Meta. <strong>Equalisation Levy.<\/strong><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-331363 aligncenter\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/03\/Equalisation-Levy.png?resize=561%2C372&#038;ssl=1\" alt=\"Equalisation Levy\" width=\"561\" height=\"372\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/03\/Equalisation-Levy.png?resize=300%2C199&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/03\/Equalisation-Levy.png?resize=1024%2C680&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/03\/Equalisation-Levy.png?resize=768%2C510&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/03\/Equalisation-Levy.png?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 561px) 100vw, 561px\" \/><\/p>\n<h2>About Equalisation Levy<\/h2>\n<ul>\n<li>The Equalisation Levy was introduced in India through the Finance Act, 2016, to<em> tax digital transactions<\/em>\u2014specifically, income earned by foreign e-commerce companies from Indian sources.<\/li>\n<li>It is aimed at taxing <em>business-to-business transactions<\/em>.<\/li>\n<li>It is also often referred to as the &#8220;<em>Google Tax.<\/em><\/li>\n<li>It is a<em> direct tax<\/em>, which is withheld at the time of payment by the service recipient.<\/li>\n<li><strong>Conditions for Equalisation Levy Applicability<\/strong>:\n<ul>\n<li>The payment should be made to a<em> non-resident service provider<\/em>;<\/li>\n<li>The annual payment made to one service provider <em>exceeds Rs.1,00,000 in one financial year.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><strong>Services covered under Equalisation Levy:<\/strong>\n<ul>\n<li><em>Online Advertisement Services (Effective from June 1, 2016).<\/em><\/li>\n<li>Any provision for <em>digital advertising space or facilities\/services<\/em> or selling goods to Indian residents, or users accessing services\/goods through Indian IP addresses (Effective from April 1, 2020).<\/li>\n<li>It was also mentioned during the introduction of the levy that as and when any other services are notified, these will be included with the aforesaid services.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Equalisation Levy Exclusion<\/strong>:\n<ul>\n<li>The <em>non-resident service provider has a permanent office in India<\/em>, and the requested service is linked to that permanent office\/establishment.<\/li>\n<li>The total consideration amount to be paid for the specific service payable or received is <em>less than Rs.1 lakh<\/em>.<\/li>\n<li>The <em>service described is not intended to be used to pursue a profession or work<\/em>.<\/li>\n<li>An exemption under section 10(50) of the Act is <em>provided to avoid double taxation<\/em> for any income arising from specified services provided on which equalisation levy is chargeable.<\/li>\n<li>An income chargeable to tax as fees or royalties for technical services will not be included as income for the equalisation levy purposes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Tax Rates under Equalisation Levy:<\/strong>\n<ul>\n<li>For <em>specified digital services<\/em>, such as online advertising, the rate is<em> 6%<\/em> of the gross consideration.<\/li>\n<li>For <em>e-commerce transactions<\/em>, such as online sale of goods or services, the rate is <em>2%<\/em> of the gross consideration.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News- The government has proposed the abolition of the 6% Equalisation Levy on online advertising in the Finance Bill 2025. This move will benefit advertisers on digital platforms like Google, X and Meta. Equalisation Levy. About Equalisation Levy The Equalisation Levy was introduced in India through the Finance Act, 2016, to tax digital transactions\u2014specifically, income&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/equalisation-levy\/\">Continue reading <span class=\"screen-reader-text\">Equalisation Levy<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":331363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-330879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/03\/Equalisation-Levy.png?fit=1280%2C850&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/330879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=330879"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/330879\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/331363"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=330879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=330879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=330879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}