Ans: Over the last decade, the IT (Information Technology) sector has exponentially expanded, bringing with it new business models that do not rely on their physical presence. This brought about new difficulties with regard to their taxation and disputes.  Thus, the government introduced a new Equalisation Levy in 2016 to tax the income of foreign e-commerce companies in India. It would impose a tax (6% of gross consideration) for online advertisement and related facilities/services.