CBDT revises norms for processing of equalisation levy

Income Tax

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Feb 09, 2023 

The Central Board of Direct Taxes has introduced fresh norms for filing of statements for equalisation levy by companies that would allow the tax commissioner to reject returns that they deem to be invalid and has said that 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.

Equalisation levy or Google tax, as it is often called, 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. It is levied at 2% on the consideration amount paid to non-residents who own, operate or manage an e-commerce facility or platform. Companies have to file the equalisation levy statement by June 30 of a financial year. 

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