For payment of equalization levy, a presumptive tax the income tax department has come up with new form of payment. This shift has been made in inclusion of foreign trading companies which have been carrying out payment of levy on the digital transactions in India.
The New Equalisation Levy came into effect on April 1 this year with amendment by the IT department is imposed on the e-commerce operator who receives consideration on e-commerce supply or services from: Indian Resident, Person who uses Indian IP address for purchasing such supplies and services and Non-resident.
The reconstructed challan also gives options for abroad on looking for the payees address details further giving agreement to the foreign companies for their role up and making the payment due. The levy seeks options to cover the e-commerce transactions which nearly had some nexus with India.
United States had undergone an investigation to clarify whether the digital taxes implemented by nine other countries and India differs to any of the US companies. This modification in India also comes into consideration after botherations by the government authorities.
Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP said, “This has rather imposed a burdensome and challenging task for non-resident e-commerce players to apply for and obtain PAN within 1 business day in the midst of curbs, lockdown and pandemic affected business life and also organize the mode of payment through an Indian bank account or debit card issued by an Indian Bank.”
The experts advise on implication of Frequently Asked Questions as they would make the taxpayers understand their obligations in a much better form and to easily determine the accurate amount of tax payable.