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Digital tax: India may face retaliatory tariffs by the US on slew of items in November

Is US trade body s probe undermining India s right to tax digital transactions?

Is US trade body s probe undermining India s right to tax digital transactions? In a recent interaction, revenue secretary Ajay Bhushan Pandey had told BusinessToday.In that India is not taxing any transaction outside India, but if any transaction has happened within India, they can be taxed by Indian parliament Dipak Mondal | January 8, 2021 | Updated 08:21 IST The investigation by the USTR found that the India s digital services tax targets digital services, but not similar services provided non-digitally US Trade Representative (USTR) has found India s 2% equalisation levy on revenue generated from a broad range of digital services offered in India unreasonably contravening international tax principles. But the Indian government s stance on the issue is that it is the sovereign right of the parliament to tax certain transactions if origin of those transactions are from within India.

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