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)].
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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.
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Appendix G Alternative Levy Equalization Formula By Rep. Jim McIntire Alternative Formula Assumptions Spend the same amount in the 1st year of implementation as the ...
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