Business Standard

Finance Act fails to address industry concerns over equalisation levy

Experts say levy will cause compliance problems for taxpayers, having come so late. Companies will have to do a lot of adjustments in their own systems while trying to comply with this newly clarified

Several global firms missed the July 7 deadline of depositing tax, expecting that the Indian government might review the levy
Web Exclusive Premium

Dilasha SethIndivjal Dhasmana New Delhi
The government offered some relief on its contentious proposals on equalisation levy, through an amendment in the finance Bill, 2021. However, this did not satisfy industry. 

While the levy applied only to digital advertising services till March 2020 at the rate of six per cent, the government widened the scope to impose two per cent tax on non-resident e-commerce players with a turnover of Rs two crore from April 1, 2020.

In fact, the Finance Bill, 2021 sought to further expanded the scope of the two per cent equalisation levy by way of clarifications to e-commerce supplies or services when

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 31 2021 | 4:45 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com