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UPSC 2018: With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (d) Neither 1 nor 2
The 6 % Equalisation Levy on online advertisement services was introduced by the Finance Act 2016 as a stand-alone levy and is not part of the Income-tax Act, so Statement 1 is wrong. Because it is outside the scope of Double Taxation Avoidance Agreements, non-resident advertising companies generally cannot claim foreign-tax credit for the levy, making Statement 2 wrong as well. ([ibanet.org](https://www.ibanet.org/article/DF407BCF-8336-4D8F-986E-BCC1BB1064EF?utm_source=openai))
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What is the correct answer to this UPSC 2018 Indian Economy question?▼
The correct answer is option (d): Neither 1 nor 2. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Taxation question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2018, GS Paper 1, as Question 8. It falls under Indian Economy > Taxation.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Taxation?▼
UPSC has asked 19 questions from Taxation (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.