Equalisation Levy: An Analysis Of Digital Taxation

Sanjana Mehta, Jindal Global Law School

Introduction

With the ever-evolving Information Technology, the nations across the globe have initiated advancement to pace up with the digitalization of economy. This global exponential expansion of the Information Technology has led to an increase in the demand and supply of digital services. In light of the same, new business models have been set up globally relying on the telecommunication and digital networks. The Digital Economy constitutes of various evolving business models such as e-commerce, online advertising, app stores, online payment modes and social media. This is a global phenomenon, strongly evident in India as well. India is one of the fastest growing e-commerce markets in the world, home to some of the giant players such as Flipkart, Paytm, Amazon, etc. What makes it successful? - advanced, evolving, cheaply accessible internet connectivity and technology solutions, which are the main enablers for the global success of this industry and increasing popularity of digital economy, challenging international physical borders and outpacing the principles of traditional economy.