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

I.A.S. (Pre) 2018