India: Adoption of Equalisation Levy in Finance Act 2016

The Rajya Sabah approved the Finance Act 2016 which was therefore adopted. it contains the introduction of a digital service tax. A tax of 6% shall be applied to the amount received for any specified service received by a person resident in India. Specified service in this context refers to "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 tax shall apply to services provided by a person non-resident in India. The tax shall be deducted by the recipient and delivered to the respective tax authority if the received services amount to more than INR 100'000 per year.