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Showing posts from April, 2022

EQUALISATION LEVY – CHAPTER VIII OF FINANCE ACT, 2016

        EQUALISATION LEVY Equalisation levy means the tax leviable on consideration received or receivable for any specified service or e-commerce supply or services. Charge of equalization levy on specified services: Equalisation levy @6% is leviable on the amount of consideration for specified service received or receivable by a person, being a non-resident from - (a) a person resident in India and carrying on business or profession; or (b) a non-resident having a PE in India.   Threshold limit: Equalisation levy is deductible if the aggregate amount of consideration for specified service in a previous year exceeds O ne Lakh Rupees Non- Charge of equalisation levy on specified services: Equalisation levy is not chargeable, where – (a) the non-resident providing the specified service has a PE in India and the specified service is effectively connected with such PE; (b) the aggregate amount of consideration for specified service received or receivable in a previous year by the