Equalisation Levy on online advertising (FA 2016):
A2%
B6% on gross consideration to non-residents (per relevant Section)
C8%
DWithdrawn (per relevant Section) (per relevant Section)
Answer & Solution
Correct answer: B. 6% on gross consideration to non-residents (per relevant Section)
1. FA 2016 introduced EL at 6% on specified online advertisement/digital ad space provided by non-residents.
2. Indian payer withholds; failure leads to disallowance under 40(a)(ib).
3. Separate 2% e-commerce EL (FA 2020) was WITHDRAWN from 1 Aug 2024.
_Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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