Equalisation Levy

Tax Glossary Definition

Equalisation Levy

Equalisation Levy is a tax imposed on payments made to non-resident companies for digital services, primarily online advertising, in India. It ensures that foreign digital service providers contribute to the Indian tax system when earning revenue from Indian users.

Example: A company in India pays ₹1,00,000 to a foreign firm for online advertising. A 6% Equalisation Levy applies, amounting to ₹6,000, which must be remitted to the government..

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