Insta
No Equalisation Levy On Foreign Companies Paying Income Tax In India, Clarifies FM Nirmala Sitharaman
Swarajya Staff
Mar 24, 2021, 12:16 PM | Updated 12:16 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
In a major announcement, Finance Minister Nirmala Sitharaman on Tuesday clarified that platforms similar to Alibaba, Amazon, and Netflix will not be accountable for the equalisation levy as long as the goods and providers listed are owned or provided by an Indian permanent institution of abroad entity, reports Economic Times.
The Lok Sabha on Tuesday passed the Finance Bill, 2021, with Sitharaman introducing fresh amendments. She stated that the equalisation levy will not be applicable on foreign companies who pay income tax in India.
She said that equalisation levy has been imposed to provide a level playing field between Indian businesses who pay tax in India and foreign e-commerce companies who do business in India but do not pay any income tax here.
"We are only trying, through the equalisation levy, to treat everybody who is operating in India equally. If the foreign e-commerce companies pay income tax here, then the equalisation levy is not applicable to them. Hence there is no extra burden on any company," she added.
“I intend to make clear that this equalisation levy will not be relevant on consideration for items, that are owned by Indian residents. Thus the priority raised concerning further burden wouldn’t be there in any respect,” Sitharaman stated.
Sitharaman said that she intended to clarify through the amendment that equalisation levy would not be applicable on consideration for goods that are owned by Indian residents.
With IANS Inputs
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.