Equalization Levy 2.0: Uncertainities Abound

2020 has been a year of surprises. One such surprise sprung by the Government of India was the introduction of equalization levy on e-commerce supplies by non-resident person. While equalization levy itself isn’t a new concept, the changes introduced in the Finance Act, 2020 are bound to change the tax implications for non-resident e-commerce operators post April 2020. As is the case with any new levy especially those introduced without discussions with industry constituents, equalization levy, too, is plagued with various inconsistencies which are bound to create ambiguity and lead to absurd implications if followed in letter and not in spirit. Stella Joseph and Niraj Hande of Economic Laws Practice (ELP), author an article in MediaNama which discusses a few of these inconsistencies and the possible implications which may arise.
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