Updated:
February 12, 2021 12:02 IST
It is not contrary to international tax principles and does not discriminate particularly against U.S. firms
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Last month,
found India’s Digital Services Tax (DST) to be discriminatory. It said the tax is “inconsistent with prevailing principles of international taxation”, and burdens or restricts U.S. commerce. India has denied these charges. The bone of contention is a 2% tax that India has charged since April 2020 on revenues from digital services, applicable only to non-resident companies. In a discussion moderated by Sriram Srinivasan, Suranjali Tandon and Nikhil Kapoor discuss this issue. Edited excerpts:
India introduced a 6% equalisation levy in 2016. From then to taxing a broader basket of online services in 2020, how do you view what India has done, especially in the context of the rest of the world?
The US has determined that India s Digital Services Tax is discriminatory and has an adverse impact on American commerce and is actionable under the trade act. At the same time, the outgoing Trump administration has left the onus of taking any action against India under Section 301 of the US Trade Act to the incoming Biden administration. Publishing the results of the investigation on the Digital Service Tax (DST) in the Federal Register on Tuesday, the US Trade Representatives (USTR) said that it had consultations with the Indian Government on the issue on November 5, 2020. Responding to the outgoing Trump administration s move, India on Thursday said the two per cent equalisation levy does not discriminate against US companies as it applies equally to all non-resident e-commerce operators irrespective of their country of residence.
Read more about India says equalisation levy does not discriminate against any US company on Business Standard. India on Thursday said that 2 per cent equalisation levy (EL) does not discriminate against any US company as it applies equally to all non-resident e-commerce operators
India on Thursday said that two per cent equalisation levy (EL) does not discriminate against any US company as it applies equally to all non-resident e-commerc
India s 2% equalisation levy discriminatory, unilateral: US
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Synopsis
The United States Trade Representative (USTR) has determined that digital services taxes adopted by India discriminated against American companies and were inconsistent with international tax principles, but stopped short of taking specific actions, saying it will continue to evaluate all available options .
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The 2% equalisation levy, or so-called Google tax, came into effect from April 1, 2020. The government had earlier imposed a 6% levy on digital advertising aimed at taxing digital companies based overseas on the business they do in India.
New Delhi: The United States Trade Representative (USTR) has determined that digital services taxes adopted by India discriminated against American companies and were inconsistent with international tax principles, but stopped short of taking specific actions, saying it will continue to evaluate all available options . The Indian government sai