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India to face USTR for taxing digital services companies
Why in News?
- United States Trade Representative (USTR) – investigate taxes (Digital Services Tax – DST) on American digital companies such as Netflix, Airbnb, Uber, LinkedIn and Spotify.
More on News
- Section 301 of USA
- Adopted in 1974
- gives USTR “broad authority” to investigate and respond to a foreign country’s action which may be “unfair” or “discriminatory” as well as negatively affect US commerce.
- It allows USA president to impose tariff and non-tariff barriers on other nations
- India – Amendment to Finance Act, 2020
- Expanded ambit of equalization levy for non-resident e-commerce operators
- Includes who involved in supply of services, including online sale of goods and provision of services
- Equalization levy – 6% if non-resident service provider’s payment on advertisements exceeds Rs 1 Lakh