7. With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

1. It is introduced as a part of the Income Tax Act.

2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the "Double Taxation Avoidance Agreements".

 

Select the correct answer using the code given below: 

1. 1 only

2. 2 only

3. Both 1 and 2

4. Neither 1 nor 2

Correct Answer :