Govt Formalises Registration Process Of Vintage Motor Vehicles

Society of Indian Automobile Manufacturers (SIAM) has careworn the necessity to make clear the scope of the two% Equalization Levy.

Equalization Levy is meant to impose a tax on funds made to international beneficiaries for digital companies supplied. However, the amendments proposed below the Finance Bill 2021 could inadvertently introduce interpretation points to cowl many abroad manufacturing corporations having subsidiary manufacturing entities in India, notably within the Automotive sector, below international collaborations or Licencing preparations.

The present definitions of “E-commerce Operator”, “online sale of goods” and “online provision of services” within the Finance Act, used for the aim of Equalization Levy, have created a gray space, particularly for circumstances the place there’s partial on-line communication of putting buy orders, by Digital Platforms, adopted by the bodily supply of products and funds made by way of authorised banking channels.

Seeking readability on the applicability of Equalization Levy, Rajesh Menon, Director General, SIAM mentioned: “Digitalization is used in the auto sector as a matter of administrative convenience and for increasing efficiencies – not for taking a final commercial decision on Sale and Purchase. Actual commercial decisions are offline and done within the overall master agreement in the form of a Licence Agreement or JV Agreement, etc. Therefore, internal Digital System for supply-chain management should not fall within the provisions of Equalization Levy.”

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