India’s equalisation levy: Will it ignite a new trade war?
SECTIONS
Share
Synopsis
USTR’s report points out that: “India’s Digital services taxes is an outlier. It taxes numerous categories of digital services that are not leviable under other DSTs adopted around the world. This brings more US companies within the scope of the DST, and makes the measure significantly more burdensome.”
Agencies
While the path that India will adopt is not immediately known, it is unlikely that India will budge on its stand that its Equalisation Levy (EL) aka digital services tax is unequitable. In this backdrop, the Indian government will need to gear up for some hard negotiations.
Updated Jan 06, 2021 | 15:20 IST
Laying out in stark terms the challenge India faces at the LAC, US Ambassador Kenneth Juster said New Delhi was confronting “perhaps on a sustained basis, aggressive Chinese activity on its border”. Outgoing US Ambassador Kenneth Juster at the farewell event in Delhi on Tuesday. | Photo Credit: PTI
Key Highlights
Juster’s concerns about India-Russia defence ties are likely to be shared by the Biden administration
If the answer to New Delhi’s China predicament is pivoting towards America, then that will come with attendant costs on the trade and defence deal fronts
The US ambassador suggested that the ‘Make in India’ mantra “will limit India’s capacity to truly integrate into global value chains