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TMI BlogChapter VIII of FINANCE ACT, 2016 - EQUALISATION LEVYX X X X Extracts X X X X X X X X Extracts X X X X ..... oducing activity and a specific location. From a certain perspective, business in digital domain doesn't seem to occur in any physical location but instead takes place in the nebulous world of cyberspace. Persons carrying business in digital domain could be located anywhere in the world. Entrepreneurs across the world have been quick to evolve their business to take advantage of these changes. It has also made it possible for the businesses to conduct themselves in ways that did not exist earlier, and given rise to new business models that rely more on digital and telecommunication network, do not require physical presence, and derives substantial value from data collected and transmitted from such networks. These new business models ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal goods or services provided by a foreign e-commerce provider or imposition of a equalisation levy on consideration for certain digital transactions received by a non-resident from a resident or from a non-resident having permanent establishment in other contracting state. Considering the potential of new digital economy and the rapidly evolving nature of business operations it is found essential to address the challenges in terms of taxation of such digital transactions as mentioned above. In order to address these challenges, it is proposed to insert a new Chapter titled Equalisation Levy in the Finance Bill, to provide for an equalisation levy of 6 % of the amount of consideration for specified services received or receivable by a non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxation, it is proposed to provide exemption under section 10 of the Act for any income arising from providing specified services on which equalisation levy is chargeable. In order to ensure compliance with the provisions this Chapter, it is further proposed to provide that the expenses incurred by the assessee towards specified services chargeable under this Chapter shall not be allowed as deduction in case of failure of the asseseee to deduct and deposit the equalisation levy to the credit of Central government. This Chapter will take effect from the date appointed in the notification to be issued by the Central Government. Visit for List of sections: Chapter VIII of FINANCE ACT, 2016 - EQUALISATION LEVY - - statute, statutory provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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