This would mean a 6% tax levy on all online multinational companies that earn revenue from India. Equalisation levy, also being called as
India had introduced this equalisation levy on the advertising revenue of multinational web companies in $4, becoming the first country to tax digital transactions. Now, based on the advise of senior tax experts, the government is said to be widening the scope of this tax.
Grossed up taxes would mean that actual burden would be about 7-8% despite a 6% tax. As of now, this tax is applicable only on online advertisements, and $4, $4, Yahoo and
A sequential and phased development of this tax could include even the $4 on smartphones. "It was earlier decided that by December this year the levy would be applicable on applications (apps) bought on platforms like $4 or Apple. However, due to other regulatory changes, equalisation levy was postponed for the budget," a source told ET.
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