USTR backs action against India's equalisation levy, finds it burdensome

Highlighting the discrimination part, the report said that of the companies that are subjected to India's equalisation levy, 72 per cent are American companies

The US has held that India’s digital tax (2 per cent) on technology majors is unreasonable, burdensome, and discriminatory against

American companies like Amazon, Google, and Facebook, and inconsistent with international tax principles.

The office of the US Trade Representative (USTR) has noted that India’s digital services tax (DST), or equalisation levy, was “actionable” under Section 301 of the Trade Act, which may mean relatiatory tariffs on Indian products.

The report, based on a Section 301 probe initiated in June last year, found India’s equalisation levy to be inconsistent with international tax principles because it failed to provide tax certainty, targeted revenues unconnected