Business Standard

India's OECD tax deal may have revenue implications, say experts

Could mean India will have to withdraw 2% equalisation levy on firms by 2023

OECD
Premium

India’s proposed threshold would have covered around 5,000 global companies as against just 100 companies under the final proposal.

Dilasha Seth New Delhi
India conceding ground to bring only top 100 digital companies like Google, Facebook, and Netflix into the global taxation pact may have revenue implications. This will mean that New Delhi will have to withdraw the contentious 2 per cent equalisation levy on e-commerce operators by 2023.

This may have revenue implications for India, experts pointed out, as the equalisation levy has a much lower annual revenue threshold of Rs 2 crore (Euro 0.2 million) as against Euro 20 billion agreed by 130 countries at the Organization for Economic Cooperation and Development (OECD).

India, along with other developing countries, was pitching for at

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 05 2021 | 6:10 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com