What is Equalisation Levy on Digital Advertising?
Nexa Consultancy | Startup & Finance Glossary
A tax levied on payments made to non-resident technology companies for online advertising and related services.
Startup Example: A D2C startup in India spends ₹1 Lakh on Facebook and Google ads. Since these are non-resident companies, the startup is required to deduct an Equalisation Levy (currently 6%) on this payment and deposit it with the government.
This is a critical compliance point covered in our tax compliance services.