<h1>Equalization levy: a gross based charge on specified cross border digital services to address nexus and tax avoidance.</h1> The Committee proposes an Equalization Levy on gross payments for specified digital services (online advertising, cloud computing, hosting, website services, digital platforms and software distribution) paid by persons resident in the source jurisdiction or by local permanent establishments to non resident enterprises. A high payer threshold will exclude most B2C transactions. The levy is outside the Income tax Act, treated as a charge on payments (not income), exempting amounts subject to the levy from Indian income tax, with payer deduction/withholding limited to payers claiming deduction, simplified reporting and online compliance, and no application of tax treaties or foreign tax credits.