1. Whether Equalisation levy is applicable on Advertisement fee paid to Facebook Ireland even though Facebook has offices in Mumbai, Hyderabad etc.?
2. Is GST Applicable on above payment made to Facebook on RCM basis since it amounts to import of services?
In my opinion, the equalization levy is not applicable in case the Facebook is having offices in india, through it is deemed to be the permanent establishment in india, through which the facebook must carry out the business or profession wholly or partly. Further, this needs the proper analysis before coming to conclusion. Because, there might be the case where the facebook is only having the data centers and whether it can conclude the PE for equalization levy, needs further research.
Yes, GST under RCM is applicable for payment to Facebook. Since, it prima facie the place of supply of service is the recipient of services which is in taxable territory.