UPSC 2018EconomyModerate

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:

a
1 only
b
2 only
c
Both 1 and 2
d
Neither 1 nor 2
Indian EconomyTaxation & Digital EconomyEqualization tax6%Online advertisement servicesNon-resident entitiesIncome Tax ActDouble Taxation Avoidance AgreementsDigital economy taxation

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