6% Equalisation Levy is applicable from June 1, 2016.
Here’s a brief note capturing essential provisions of the same:
Specified services – as on date restricted to online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement, paid to a non-resident entity not having permanent establishment in India (eg Google, Facebook, etc).
Applicability: This levy is applicable if the aggregate amount of consideration for specified service in a previous year exceeds one lakh rupees.
Collection & payment: Levy deducted in a month is payable to the government account by 7th of the subsequent month (similar to TDS). Delay in payment of the levy to government account will invite simple interest of 1% and a per day penalty of Rs.1000/-, limited to amount of equalisation levy.
Annual return: to be filed in Form No.1 by 30th June of the subsequent year. Delay in filing return will cause penalty of Rs.100/- per day.
For indepth information, please refer:
1. Chapter VIII (Equalisation Levy) of the Finance Act 2016
2. Rules notified by CBDT via Notification No. 38/2016 dated 27th May, 2016