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Equalisation levy of 2% on e-comm firms non-discriminatory: India tells US

India said the ongoing multilateral consultations under the aegis of the G-20-OECD due in this regard have not arrived at any consensus even after many years of discussions

Direct tax collection net of refunds was down 32 per cent as of June 15 over the same period last year

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The concept of equalisation levy in India emerged as a result of the deliberations of the OECD Base Erosion and Profit Shifting Project, which crystallised in the BEPS Project report.

Press Trust of India New Delhi

4 min read Last Updated : Jul 17 2020 | 9:51 PM IST

India has defended the 2 per cent equalisation levy on non-resident e-commerce companies, saying it is non-discriminatory in nature and its purpose is to tax businesses that have a close nexus with the country's market through their digital operations.

In a six-page written submission to the United States Trade Representative (USTR), India said the levy is applicable only for companies with annual revenues in excess of Rs 20 million (about $ 267,000), which is a low threshold aimed at exempting very small e-commerce operators globally.

"It does not discriminate against companies based in the United States as it applies equally

Topics : e-commerce companies Indian e-commerce industry equalisation levy