The Central Board of Direct Taxes (CBDT) has introduced fresh norms for filing of statements for equalisation levy by companies.
Fresh norms
- The new norms would allow the tax commissioner to reject returns that they deem to be invalid.
- Personal appearance of assessees for clarifications is not needed.
- The provisions are part of the Centralised Processing of Equalisation Levy Statement Scheme, 2023 notified by the CBDT recently.
About Equalisation levy
- Equalisation levy ( or Google tax) was introduced in 2016 to tax the digital economy.
- While it was initially levied at 6% of the gross consideration on online advertisements and digital advertising space, its scope was widened in 2020.
- Now, it is levied at 2% on the consideration amount paid to non-residents who own, operate or manage an e-commerce facility or platform.
- The threshold for this levy is Rs. 2 crores.
- EL is levied on Non-resident e-commerce operators (not having any Permanent Establishment in India but significant economic presence)
- The EL was applied only prospectively, and has no extra-territorial application, since it is based on sales occurring in the territory of India through digital means.
- Companies have to file the equalisation levy statement by June 30 of a financial year.
