Equalisation levy on e-commerce firms: Govt says tax in line with WTO rules

India has jumped to defend the imposition of Google Tax — a 2 per cent equalisation levy on e-commerce operators — calling it non-discriminatory in nature.
 

In its comment on the Section 301 probe launched by the US last month, the government said it was fully consistent with World Trade Organization norms and international taxation agreements.
 

It emphasised that the levy was applicable prospectively, and could not be said to have ‘extra-territorial’ application.
 

“The equalisation levy does not discriminate against non-resident e-commerce operators. The underlying policy objective and application of India’s equalisation levy is to ensure a neutral and equitable