In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Hardeep Singh Puri said the equalisation levy collection stood at Rs 338.6 crore in 2016-17, Rs 589.4 crore in 2017-18, and Rs 938.9 crore in 2018-19
Updated:
February 12, 2021 12:02 IST
It is not contrary to international tax principles and does not discriminate particularly against U.S. firms
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Last month,
found India’s Digital Services Tax (DST) to be discriminatory. It said the tax is “inconsistent with prevailing principles of international taxation”, and burdens or restricts U.S. commerce. India has denied these charges. The bone of contention is a 2% tax that India has charged since April 2020 on revenues from digital services, applicable only to non-resident companies. In a discussion moderated by Sriram Srinivasan, Suranjali Tandon and Nikhil Kapoor discuss this issue. Edited excerpts:
India introduced a 6% equalisation levy in 2016. From then to taxing a broader basket of online services in 2020, how do you view what India has done, especially in the context of the rest of the world?
The table summarizing the slab wise rates applicable to
individuals is as under –
Exemption for LTC Cash Scheme
Under the existing provisions of ITA, exemption is available
for value of travel concession or assistance received by an
employee from his employer/ former employer, for himself and his
family, leave travel to any place in India ( Leave Travel
Concession or LTC ).
Due to the Covid-19 situation, it is proposed to provide tax
exemption to cash allowance in lieu of LTC.
Accordingly, it is proposed to amend the ITA to provide tax
exemption to cash allowance in lieu of Leave Travel Concession,
More foreign firms to come under ‘Google Tax’ search
Wwith the government clearly spelling out the scope of the controversial levy widely referred to as Google Tax any kind of cross-border transaction with foreign entities will be liable to be taxed.
Synopsis
The Centre’s clarification on the scope of the equalisation levy on digital transactions, provided in Union Budget 2020-21, will bring more foreign entities under the ambit of the tax.
New Delhi: The Centre’s clarification on the scope of the equalisation levy on digital transactions, provided in the union budget on Monday, will bring more foreign entities selling goods and services to either businesses or consumers through online platforms under the ambit of the tax, legal and industry experts told ET.