Charge of Equalisation Levy on 'Specified Services' - Section 165 of Finance Act, 2016 - International Taxation - Income Tax

Charge of Equalisation Levy on 'Specified Services' - Section 165 of Finance Act, 2016 (1) Equalisation levy @6% is leviable on the amount of consideration for any specified service received or receivable by a person, being a non-resident from a person resident in India and carrying on business or profession; or a non-resident having a permanent establishment in India. (2) Equalisation levy not chargeable , where The non-resident providing the specified service has a permanent establishment(PE) in India and the specified service is effectively connected with such permanent establishment(PE); The aggregate amount of consideration does not exceed ₹1 lakh for specified service received or receivable in a previous year by the non-resident from a person resident in India and carrying on business or profession, or from a non-resident having a permanent establishment in India; or where the payment for the specified service by the person resident in India, or the permanent establishment in India is not for the purposes of carrying out business or profession. Income - Tax Exemption [ w.e.f. 1st Jun 2016 Section 10(50) ] From 01.09.2024 any income arising from any (i) specified service provided on or after the date on which the provisions of Chapter VIII of the Finance Act, 2016 comes into force; or (ii) e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2020 but before the 1 st day of August, 2024, and chargeable to equalisation levy under that Chapter. [ Substituted Finance (No. 2) Act, 2024 ] Upto 31.07.2024 - any income arising from any specified service provided on or after the date on which the provisions of Chapter VIII of the Finance Act, 2016 comes into force or arising from any e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2020 and chargeable to equalisation levy under that Chapter. However, the exemption will not apply for royalty/fees for technical services which is taxable under the income-tax read with DTAA.