News

Govt firm on ‘equalisation levy’, CBDT empowers staff

Govt firm on ‘equalisation levy’, CBDT empowers staff

The Central Board of Direct Taxes (CBDT) on Saturday assigned jurisdiction to officers from its international tax division over assessees coming under the purview of ‘equalisation levy’ on e-commerce companies. Experts said the CBDT’s move is a sign that the government is moving ahead with the levy, which came into force on April 1, despite several representations from industry bodies on behalf of foreign companies calling for deferment of the tax due to the fear that the wide-ranging scope of the law may end up taxing even non-digital transactions, leading to possible double taxation.
“As the first due date for payment of equalisation levy is just a month away on July 7, the income tax authorities seem to be working steadily towards the implementation and chances of deferment look bleak,” Sandeep Jhunjhunwala, partner at Nangia Andersen, said.

Tax experts said the finance ministry was expected to defer the levy as it was unclear whether non-resident e-commerce operators need to have income tax registration in India for payment of levy, if tax would be levied on gross consideration or commission income for platform-based business models and corresponding exemption under the Income Tax Act to avoid double taxation.

Top