Rs 146.5 cr obtained through equalisation levy

The government has earned revenue of Rs 146.5 crore through equalisation levy, put into effect from June 1 this year, Parliament was informed on Friday.

"The revenue accrued for the government exchequer through the equalisation levy amounts to Rs 146.5 crore from June 1, 2016 to December 3, 2016," Minister of State for Finance Santosh Kumar Gangwar told the Lok Sabha in a written reply.

The government introduced equalisation levy of 6 per cent on online advertisers to tap tax on income accruing to foreign e-commerce companies from India.

It was provided that a person making payment exceeding in aggregate Rs 1 lakh in a year, to a non resident, who does not have a permanent establishment in India, as consideration for online advertisement, will withhold tax at 6 per cent of gross amount paid, as equalisation levy with effect from June 1, 2016.

The levy only applies to business to business transactions.

"This is levied in line with the Organisation for Economic Co-operation and Development's base erosion and profit shifting project to tax e-commerce transactions," said Gangwar.

--IANS

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