The Finance Ministry has introduced changes to the form used to pay equalisation levy, to include the option of paying up the new 2% levy on digital transactions conducted in India by foreign e-commerce companies.
The new levy was introduced in the Union Budget and was made effective from April 1, with the first instalment payment due on July 7.
The IT department has modified the challan ITNS 285 – which is used to pay the levy – through an online mechanism. The amended form now adds "e-commerce operator for e-commerce supply or services" under 'Type of Deductor'. The challan also seeks mandatory Permanent Account Number of the deductor.
The modified challan now includes 'Outside India' option while seeking address details of payees, allowing foreign e-commerce players to enter their details and make the due payments.
This would bring more than two dozen non-resident online retailers supplying goods and services under the purview of equalisation levy.
