equalisation levy in India
                     equalisation levy in India
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)].
Further, amendment was brought in the year 2021 with Union Budget 2021 
(with retrospective effect) where the applicability of levy and the definition 
of e-commerce supply have been further clarified/ expanded, giving it an 
avatar of Equalisation levy 2.1.
equalisation levy in India
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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