equalisation levy
                     equalisation levy
India has been one of the fore-runners in adopting many BEPS action plans and the
digital taxation was no exception. In year 2016, India introduced 6% equalisation levy (
let us consider this as version 1.0) on digital specified services received by a non-
resident not having a Permanent Establishment (PE) in India.
In year 2020, India has introduced a version 2.0 of the equalisation levy, which extends
the scope of such levy to non-resident e-commerce operators providing an e-
commerce supply or a service [companies that are not covered by the Equalisation
levy 1.0 and whose turnover is more than INR 20 million (USD 260,000)].
equalisation levy
We at TransPrice help non-residents doing business with Indian business houses or customers in
analyzing & testing their business models for applicability of Equalisation Levy (Digital Tax) and if
applicable, post application quarterly and annual compliances and if not applicable,
documenting the same.
TransPrice specializes in assisting non-residents engaged in business activities with Indian
entities or customers in navigating the complexities of the Equalisation Levy (Digital Tax). Our
experts thoroughly analyze and evaluate their business models to determine the applicability of
this tax. For those businesses that fall within the purview of the levy, we provide comprehensive
support for quarterly and annual compliance. Alternatively, if the Equalisation Levy is not
applicable, we ensure proper documentation to substantiate the exemption. Our services
encompass tax dispute resolution in India, addressing income tax disputes, and strategic
domestic tax planning to optimize your tax position.

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