Panel for equalisation levy of 6-8 percent on digital transactions
Q. A CBDT committee on taxation of e-commerce has suggested an equalisation levy of how much for B2B deals with a view to tax digital transactions?- Published on 22 Mar 16a. 6-8%
b. 6-9%
c. 6-10%
d. 6-11%
ANSWER: 6-8%
Panel says equalisation levy of 6-8 percent on digital transactions is for business to business deals for e-commerce companies. Report also suggested introduction of tax based on BEPS or Base Erosion and Profit Sharing earlier endorsed by G20 and OECD. The CBDT committee also suggested equalisation levy be imposed on amount paid to non resident by Indian resident for specified digital services. It also indicates the Levy should not be part of the Income Tax Act.
