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?