‘Centre won’t extend deadline for levy on foreign e-com firms’
Government comment:
- The government is not considering extending the deadline for payment of Equalisation Levy by non-resident e-commerce players.
- A majority of them are yet to deposit the first instalment of the tax.
- Asserted that the entities liable to pay the levy had ample time to apply for PAN and prepare themselves for the levy.
About equalisation levy:
- The 2% equalisation levy was introduced in the 2020-21 Budget and came into effect from April 1.
- The deadline for payment of the first instalment for April-June is July 7.
- The tax would be levied on consideration received by e-commerce operators from online supply of goods or services.
- The tax applies on e-commerce transactions on websites such as Amazon.com.
- Google in particular has been worried as the tax applies on advertising revenue earned overseas if those ads target customers in India.
- Late-payment would attract interest at the rate of 1% per month or part of the month.
- Non-payment could result in a penalty equal to the amount of equalisation levy, along with interest.
- It is a direct tax.
- Equalisation levy at 6% has been in force since 2016 on payment exceeding Rs 1 lakh a year to a non-resident service provider for online advertisements.
- It is now applicable for e-commerce companies that are sourcing revenue from Indian customers without having tangible presence here in the country.
1.png)
