UPSC Exam  >  UPSC Questions  >  With reference to Equalisation Levy 2.0, whic... Start Learning for Free
With reference to 'Equalisation Levy 2.0', which of the following statements is/are correct?
1. It covers online sales of all goods and services.
2. It is applied to only non-resident companies.
3. India is the only G20 nation to have implemented such a tax.
Select the correct answer using the code given below.
  • a)
    1 and 2 only
  • b)
    2 only
  • c)
    3 only
  • d)
    1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
With reference to Equalisation Levy 2.0, which of the following statem...
  • Recently, several European nations like France and Italy have asked tech giants like Google, Apple, Facebook, and Amazon (GAFA) to pay Digital service tax.
  • Digital service tax covers online sales of goods and services. It includes policies that specifically target businesses that provide products or services through digital means. Hence statement 1 is correct.
  • India was the first country to introduce a digital tax called ‘Equalisation Levy’ in 2016 at the rate of 6%. EL 1.0 was payable by Indian residents on online advertisement services purchased from nonresident companies.
  • From 1 April 2020, the scope of equalization levy has been expanded to include a 2% levy on all online sales of goods or services into India by non-resident e-commerce operators (‘EL 2.0’). Hence statement 2 is correct.
  • Recognizing the need to reform international tax rules for taxing digital companies such that countries get their fair share of taxes, the OECD has been working on proposals for new rules but so far has not arrived at a consensus on the final scope and manner of taxation.
  • Meanwhile, many countries such as France (3% levy), Italy, Turkey, Austria, UK, Malaysia, Spain etc. have either proposed or implemented a unilateral digital tax applicable to digital companies, called as the ‘Digital Services Tax’ (‘DST’). Hence statement 3 is not correct.
View all questions of this test
Explore Courses for UPSC exam

Top Courses for UPSC

Question Description
With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?.
Solutions for With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?, a detailed solution for With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice With reference to Equalisation Levy 2.0, which of the following statements is/are correct?1. It covers online sales of all goods and services.2. It is applied to only non-resident companies.3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.a)1 and 2 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev