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of <h1>Non-residents with a permanent establishment in India must deduct equalisation levy per Section 165 if payments exceed 1 lakh.</h1> Every resident conducting business or profession, or a non-resident with a permanent establishment in India, must deduct the equalisation levy from payments to non-residents for specified services if the annual consideration exceeds one lakh rupees. This levy, as per Section 165, must be credited to the Central Government by the seventh day of the following month. Failure to deduct does not exempt the assessee from paying the levy, which remains payable to the Central Government as stipulated.
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