Indian Government recently notified Equalisation Levy Rules, 2016 on digital transactions in consonance with the initiative of the Organization for Economic Co-operation and Development (OECD).
The Rules shall come into force w.e.f. June 1, 2016.
The Finance Act, 2016 (Act) has introduced equalisation levy of 6% in respect of certain specified services involving payments exceeding INR 100,000 (~USD 1500) in the online marketing and advertising domain rendered by non-residents who do not have a permanent establishment (PE) in India. This is in the form of a withholding obligation.