Equalisation Levy 2.0 - a detailed analysis

As India moves towards managing the ‘new normal’, businesses need to quickly adapt to the expanded scope of Equalisation Levy (EL 2.0). The provisions of EL 2.0 are broad, potentially impacting any ‘online’ transaction undertaken by Indian consumers/ businesses with non-resident entities. The U.S. decided to undertake an investigation on tax measures adopted/proposed by various countries, including India. This move by the U.S. led many to expect that EL 2.0 might be deferred. Further, considering the wide scope and several interpretational issues involved, it was also expected that clarifications on the scope and applicability of EL 2.0 would be provided by the Government. However, with the recent introduction of payment challans for affecting EL 2.0 payments, it appears that the levy is unlikely to be deferred and EL 2.0 is here to stay.

As a next step, it is critical for organisations to access and factor the impact of EL 2.0 on their businesses, understand compliance obligations and chart out the way ahead. Towards this, we have put together a comprehensive document which discusses the impact of Equalisation Levy on businesses. View Document

In the above backdrop, Dhruva Advisors organised a discussion that articulated the complex nuances arising out of the Equalisation Levy – with an expert panel of Dhruva Partners comprising of:

Mr. Dinesh Kanabar
CEO, Dhruva Advisors

Mr. Rishi Kapadia