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Equalisation Levy: Features, Applicability, Penalty

Equalisation Levy: Features, Applicability, Penalty

Equalisation Levy: Features, Applicability, Penalty

Equalisation Levy: Features, Applicability, Penalty

Concept of Equalisation was introduced in India and took influence from 01.06.2017. This financial act provide a new “Equalisation Levy” of 6% on consideration received against services provided to Indian Resident or a Non-resident person  who has permanent establishment in India by a Non-resident person without any permanent establishment in India.

Global advertising companies are indirectly affected by Equalisation Levy concept by way of taxation.


  1. When resident or non-resident who have permanent establishment in India need to pay consideration to another non-resident trader.
  2. If the consideration against services is meet at least Rs. 1,00,000 in one financial year.


There are only two kinds of services which are fall under Equalisation Levy criteria:-

  • Digital advertising services
  • Online advertisement and sales promotion


  • Every Taxpayer have to deposit levy tax within the 7th of following or next month
  • And taxpayer needs to file the annual statement of Equalisation levy by 30th June of following financial year.


  1. Interest shall be charged as 1% per month or part of the month if any compliance of Equalisation levy is not meet by the service recipient.
  2. When the person charge Equalisation levy but not deposit the same then the penalty is Rs. 1000/- per day along with the interest amount and other depositions.
  3. In case when taxpayer fails to file Equalisation levy statement, then payer have to pay penalty of Rs. 100/- per day till the default continues.

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26 Mar

Neha Sahni
Neha Sahni

All pieces that originate from the Team are important to present the organization and to reach at new statures. Neusource is one of an Endeavor in current field.

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