Source- ICAI MTP PAPER 6C April’22
Equalisation levy is governed by Finance Act. Hence it won’t get affected by DTAA provisions ( when we determine more beneficial provisions out of DTAA & IT Act, 1961).
Ans to MCQ no 4 is (d). Pls explain the reason for the same.
In my opinion equalisation levy of 165A shall be levied @ 2%, irrespective of whether DTAA exists or not.
In my opinion since TDS has already been deducted so that’s why equalisation levy shall not be deducted.
Hope it helps