Any foreign company or entity or person , providing  cloud services or provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet or providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network or online supplies of digital content (movies, television shows, music, etc.) or digital data storage or online gaming to a person resident in India, now will be under the clutch of Indian indirect tax law from 1st of December 2016 .

Earlier, the Government of India brought out a new legislation for taxing big online advertising revenue earners in India like Facebook or Twitter or Google . The law , separate from Income Tax Act , is called Equalization tax .