6% Equalisation Levy by Government of India on Online Advertisement Services
As per the Notification No. 37/ 2016: F.No. 370142/12/2016-TPL dated 27 May 2016 read with Finance Act, 2016, Government of India has levied an ‘Equalisation Levy’ on provision of online advertisement services or any other service or facility for the purpose of online advertisement by a Foreign Company provided on or after June 1, 2016 to specified customers in India.
The applicable rate of the levy is 6% of value of fees for providing online advertisement or related services.
As per the terms and conditions applicable to AdWords require customers to bear any tax or Government charges on the services availed of by them.
Accordingly, with respect to invoices raised by Google for online advertisement and service for the purpose of online advertisement provided on or after 1 June 2016, all bloggers will need to deposit 6% Equalisation Levy (as applicable).