Digital taxation in India: equalization levies, significant economic presence, and TDS on e commerce gross receipts.
India adopted unilateral digital taxation measures: a 2016 Equalization Levy (6% on online advertising with narrow carve-outs), the 2018 statutory insertion of Significant Economic Presence into business connection rules with prescribed revenue and user thresholds, a 2020 Equalization Levy (2% on non-resident e commerce operators) together with a TDS regime (Section 194O) on e commerce gross receipts, and 2021 clarifications excluding royalties/FTS and confirming levy on gross receipts, while noting treaty and attribution challenges. (AI Summary)