Centre should keep in abeyance equalisation levy on non-resident e-commerce cos: Experts

The government should consider keeping in abeyance the 2 per cent equalisation levy on e-commerce companies as there are ambiguities surrounding its applicability, tax experts said.

Budget 2020-21, presented in February, expanded the scope of “equalisation levy” to include consideration received by e-commerce operators from e-commerce supply or services.

The 2 per cent levy came into effect from April 1, 2020.

Nangia Andersen Consulting Chairman Rakesh Nangia said the first instalment of equalisation levy would be payable in July 2020, but unsorted aspects such as double whammy caused on account of Section 10 (50) of the Income Tax Act, meaning and scope of consideration received or receivable, tax registrations and compliances may create hardship to the non-resident taxpayers.