Amendment to Equalisation Levy Provisions: Key Changes Effective 1st August 2024

The Finance Act, 2020 introduced a 2% equalisation levy on e-commerce operators for various online activities. Effective August 1, 2024, this levy will no longer apply. The levy was aimed at non-resident e-commerce operators without a permanent establishment in India, covering transactions involving Indian residents and data or advertisements targeting Indian IP addresses. Concerns about its ambiguity and compliance burden led to its removal. Income from these services between April 1, 2020, and August 1, 2024, will be exempt under Section 10(50) of the Act.