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? 1. It is introduced as a part of the Income Tax Act. 2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the 'Double Taxation Avoidance Agreements'. Select the correct answer using the code given below:

The correct answer is option (d): Neither 1 nor 2. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.

This question was asked in UPSC CSE Prelims 2018, GS Paper 1, as Question 8. It falls under Indian Economy > Taxation.

This question is rated "moderate". It requires sound conceptual understanding of the topic.

UPSC has asked 18 questions from Taxation (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.