Introduction

The Indian Finance Act, 2016 has introduced equalisation levy with effect from 1 June 2016. It is chargeable at the rate of six percent of the consideration, for any specified service, receivable by a non-resident person from (i) a resident of India carrying on business or profession India, or (ii) from a non-resident having a PE in India.

For the purposes of the Indian equalisation levy, “Specified service” means online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement and includes any other service as may be notified by the Government of India in this behalf.