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With India Digital Tax in U.S. Sights, Should Delhi Worry?

Jan. 13, 2021, 10:21 AM

India’s equalization levy is likely to impact 119 foreign digital service companies. Of these, 86 are from the U.S., seven from China and the U.K. each, six French and five Japanese. The levy is also wide in its scope compared to other countries—this discriminatory approach will have an outsized impact on U.S. digital firms, as per the investigation by the United States Trade Representative’s office.

Just because India’s levy is wider compared to other countries who have introduced a digital services tax, doesn’t make it discriminatory under section 301, Mukesh Butani, founding partner at BMR Legal told BloombergQuint.

It applies...

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