Provision under the Income Tax Act, 1961 :
- Applicable – To a person who makes any payment to non resident asseesse.
- The above mentioned provisions are not applicable, if the non resident or foreign company does not have any business connection in India. For Example Import of goods & services from abroad.
- The person is required to deduct TDS at the rate applicable as per section 195 of the act.
- The maximum rate of the tax is 30%, plus surcharge, if applicable and cess at 4%.
Payment of Equalisation Levy :
- Any payment made by
- A person resident in India & a non resident having a permanent establishment in India and carrying on business or profession .
To
any non resident for specified services.
- Specified services – online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement and includes any other service as may be notified by the Central Government in this behalf.
- The person is required to deduct levy @ 6%, if the amount exceeds Rs. 1,00,000/-.
- Incomes subjected to the same are exempted from Income Tax.
Any payment made by (specified buyer):
- A person resident in India or a
- Person buying goods from IP address in India.
- Non resident in case of sale of advertisement in India or sale of data collected from person in India.
to
E-commerce operator in India
for
- Online sale of goods or provision of services or both owned by the e-commerce operator by a E-commerce operator.
- The person is required to deduct levy @ 2%, if where the total turnover of e-commerce operator from specified buyers exceeds Rs. 2 crore in a financial year.
- Incomes subjected to the same are exempted from Income Tax.
- The above levy shall not be applicable to persons who are levied the 6% earlier levy or persons having PE in India.
