For foreign companies operating e-commerce platforms in India, PAN will now be necessary so that they can give equalization levy.
For foreign companies operating e-commerce platforms in India, PAN will now be necessary so that they can give equalization levy. According to the CBDT, it has amended the Equalization Levy Rules 2016. Foreign e-commerce companies have also been brought under this ambit, who have to pay this levy.
What is the equalization levy?
In fact, the government had imposed a two per cent tax on the services delivered by the non-resident commerce operator in the budget of 2020-21. This is called equalization levy. The department has notified the challan of the e-commerce equalization levy. For depositing levy, PAN and bank account number of e-commerce operator in Indian Bank will be required.
National e-commerce policy draft in final stage
Meanwhile, the government has said that the government is in the final stages of drafting the National E-Commerce Policy and National Retail Trade Policy. Union Minister of State for Commerce and Industry Som Prakash said that the government will support e-commerce and retail industries through its various policies. Addressing the virtual session of FICCI MassMarise-2020, Prakash said, "We are in the final stages of drafting the National Logistics Policy, New Industrial Policy, E-Commerce Policy and National Retail Trade Policy." He said that these policies are being prepared for the development of the area and these will benefit 6.5 crore small traders. Prakash said that with these efforts and cooperation of the industry, significant contribution will be made in the gross domestic product (GDP) of the country. He said that business, e-commerce and FMCG companies have a strong position in India. The number of consumers in the country is quite high, so there are opportunities for every company in the region.