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With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct? 1. It is introduced as a part of the Income Tax Act. 2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”. Select the correct answer using the code given below:

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
Answer & Solution
Correct answer: A. 1 only
UPSC CSE Prelims 2018 (GS-I, Set C), Q.8. Official answer key: A.
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