Equalization Levy, 2016 has been saved
Equalization Levy, 2016
Is it equitable?
Finance Act, 2016 has introduced a new tax aimed at internet advertising providers that earn income from India, and do not have a permanent establishment for tax purposes in India.
This article examines the contours of this tax and its impact on the Technology, Media, and Telecommunication (TMT) industry vertical.
India’s online advertising spend though not substantial, as compared to global numbers, is expected to grow at a high trajectory compared to the previous decade largely due to the increasing global footprint of Indian MNCs, an increase in the number of internet users and the booming e-commerce market. The Indian digital advertising market is expected to cross the US$ 1 Billion mark in 2016 and is expected to grow in double digits. The relevance of digital marketing for companies operating across the TMT industry vertical varies.