What is the equalisation levy, what specific services are
impacted and what are the exemptions? Here's a refresher on
India's tax on business-to-business transactions in the digital
advertising space.
The world has long moved on from bricks and mortar denoting a
place of business. No longer does a business need to have a
storefront or an office in a country in order to trade there, and
the digital economy continues to innovate what it means to be a
business in the modern age.
Yet as remote presence takes centre stage and digital businesses
become more strategic about where they base their headquarters (HQ)
for tax purposes, governments around the world throw their hands in
the air. How do these businesses working and trading in their
country get pinned down? How can governments ensure there is no
unfair advantage between traditional and digital businesses if
existing regulation means the digital business pays less tax?
