MUMBAI: The proposed withdrawal of the two% equalisation levy (EL) offers aid to non-resident digital corporations, because the consideration obtained or receivable for e-commerce provide or providers or or after Aug 1, 2024 won’t be topic to this tax.
For instance, a overseas entity promoting music or a e book to a buyer on-line will no longer should pay this tax.Nonetheless, this now casts a compliance burden on the Indian buyer.
Mitesh Jain, accomplice, Financial Legal guidelines Follow, mentioned, “The Indian buyer buying items or providers (on which EL was charged) from non-resident e-commerce operator will now have to judge the character of revenue and its taxability below the provisions of the I-T Act in addition to below the tax treaty on a case-to-case foundation.” ” Nonetheless, in sure circumstances, the non-resident vendor will not be keen to supply such particulars and will require the Indian prospects to bear the taxes in India.”
For instance, a overseas entity promoting music or a e book to a buyer on-line will no longer should pay this tax.Nonetheless, this now casts a compliance burden on the Indian buyer.
Mitesh Jain, accomplice, Financial Legal guidelines Follow, mentioned, “The Indian buyer buying items or providers (on which EL was charged) from non-resident e-commerce operator will now have to judge the character of revenue and its taxability below the provisions of the I-T Act in addition to below the tax treaty on a case-to-case foundation.” ” Nonetheless, in sure circumstances, the non-resident vendor will not be keen to supply such particulars and will require the Indian prospects to bear the taxes in India.”
