IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jun 2016 | Removal date: open ended
Still in force

Import tariff

An "equalisation levy" of 6% has been proposed to be deducted from payments made, for specified services, to non-resident entities who do not have a Permanent Establishment (PE) in India. All Indian residents or non-residents with a PE must withhold the levy from the payments made to such entities without a PE.

The specified services include online advertisements, any facility or service of online advertisement, and any provision for digital advertising space.

The levy will not be applicable if the total consideration received/receivable for providing the service to an individual entity in India is less than INR 100,000 in the previous year. Further, it will not be applicable if the services paid for by the Indian entity are not for the purposes of carrying out a business or profession.

As per the Notification 37/2016 published by the Central Board of Direct Taxes on 27 May 2016, the levy will be applicable from 1 June 2016.

AFFECTED COUNTRIES

MAP
TABLE
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AFFECTED SECTORS AND PRODUCTS

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