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Equilisation levy tax and tds applicability

Bhim Bhatt (5 Points)

18 March 2019

Applicability of equilisation levy tax 6% and tds 2% both applicable in case of google ad from outside india?

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5 Replies

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 18 March 2019

No only equalisation levy is applicable

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Bhim Bhatt (5 Points)
Replied 18 March 2019

Dear sir, Reverse charge applicable on Gst from Google ad from outside india

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 18 March 2019

Yes, GST will be applicable at the rate of 18% under RCM.

Further, I want to correct myself that you have to pay Equalisation Levy @ 6% + TDS @ 2% if you take advertisement service from any entity registered outside India.

However, for an Individual or HUF, who was not liable for tax audit last year, is not required to deduct TDS @ 2%

It would be beneficial for you, if you do business with Google India as in that case you will get credit of TDS and you will not have to pay Equalisation Levy also, in that case.

Thanks!!