UPSC Prelims 2018 · GS Paper 1 · Q8
Economy
Medium · Equalization Levy on Online Advertising
Consider the following statements regarding the 6 per cent equalization levy imposed on online advertising services in India:
1. The levy was inserted as a direct amendment to the Income Tax Act, 1961.
2. A non-resident company that pays this levy can claim it as a foreign tax credit under India's Double Taxation Avoidance Agreements.
Which of the statements given above is/are correct?