Introduction
The Equalisation Levy was initially introduced in India in 2016
under the Finance Act, 2016. It refers to the tax imposed on the
consideration received or receivable for specified services,
e-commerce supplies, or services. This levy is set at a rate of 6%
on the amount of consideration received by a Non-Resident for the
specified services provided.
Subsequently, the Finance Act of 2020 brought amendments in the
Finance Act 2016 by introducing a new Section 165A. This addition
expanded the scope of the Equalisation Levy. Under this new
provision, the Equalisation Levy is now applied at a rate of 2% on
the consideration received or receivable by an e-commerce operator
from an e-commerce supply or services provided to specified
persons.
