Equalisation levy on e commerce: non resident operators must pay levy on supplies to Indian users, triggering new compliance obligations.
The Equalisation Levy 2.0 applies to consideration received or receivable by a non resident e commerce operator for e commerce supply or services made, provided or facilitated to persons in India or to persons using an IP address located in India, covering online sale of goods, provision of services and facilitation of third party sales. The levy is payable by the non resident operator with quarterly deposit and annual reporting obligations, subject to exclusions for supplies connected to a permanent establishment, prior advertising levy coverage, and a de minimis turnover threshold, while practical and treaty related issues create double taxation and compliance uncertainties. (AI Summary)