Press Information Bureau
Government of India
Ministry of Finance
The Finance Bill, 2016 proposes equalization levy at the rate of 6% of the amount of consideration for specified services received or receivable by a non-resident, from a resident in India who carries out business or profession, or from a non-resident having a permanent establishment in India, where the aggregate amount of consideration received in a year exceeds one lakh rupees. The proposed levy will have no direct impact on consumers as it is applicable only to business to business transaction.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.