New Delhi, March 24
The government has decided not to levy 2% digital service tax if goods and services are sold through Indian arm of foreign e-commerce players.
The amendment to Finance Bill 2021 clarifies that offshore e-commerce platforms don’t have to pay 2% equalisation levy if they have permanent establishment or they pay any income tax here. However, foreign companies who are not paying any tax will have to pay.
The tax applies only to non-resident companies with annual revenue in excess of Rs 2 crore, and covers online sales of goods and services to Indians. — PTI
Level-playing field
- The amendment to Finance Bill 2021 clarifies that offshore e-commerce platforms don’t have to pay 2% equalisation levy if they have permanent establishment in India or they pay any income tax here
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