EQUALIZATION LEVY Subject: Economics Context: Firms reaping economic benefits from a different country have to be taxed even if they do not have a physical establishment in that jurisdiction, argued Commerce Secretary, while defending India’s decision to impose a 2 per cent digital services tax on foreign e-commerce firms. Concept: The equalization levy […]

Subject: Economy Context: Just one week left to pay first installment of the equalisation levy on e-Commerce companies. Concept: Equalization Levy was introduced in India in 2016-2017, with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India. Equalization Levy is a direct tax, which is withheld at […]