Equalisation levy of 6% on online ads likely to be scrapped from April 1

From April 1 of this year, the government is expected to eliminate equalization on online advertising.

According to sources, the move is likely to be part of the changes in the fund of finance bill 2025. In fact, it is charged online major, such as Google and Meta.

The transfer is significantly when concerns have been raised about several peoples, including the United States.

Vishwas Panjiar, partner, Nangia Andersen noted that the collection of equalization was always an imperfect and symptomatic solution to bring a digital transaction under the roof until the countries took place between the countries. In addition to equalization Levy, India also introduced its internal legislation to the concept of significant economic presence (September) to target foreign companies in India.

“In general, the elimination of equalization is a step towards the step in the right direction, as it not only brings certainty to the taxpayer, but also with the unilateral of Ghevli,” he said.

FINANCE ACT, 2020, also spread the scope of this collection with e-commerce supply and after April 1, 2020, at 2% interest rate. However, it was eliminated in the union budget, which was presented in July 2024, entering August.

According to sources, in addition to the elimination of online advertising alignment, the changes in Finance Bill 2025 are not very important in nature and are mainly procedural.

Lok Sabha received the Finance Bill to discuss and move on on March 24.