Due to immense increase in digitalisation and digital transformation of various businesses whereby digital processes and tools were adopted to achieve strategic business goals, the concept of Equalisation Levy was introduced in India in the year 2016 with the intention of taxing the digital transactions relating to advertisement services provided by the non-residents to the Indian businesses or the businesses having permanent establishment (“PE” for short) in India.
In this article, we have attempted to address the common queries on the amendments in Equalisation Levy by the Finance Act, 2020.