Govt won’t levy digital tax on foreign e-commerce firms if goods and services are sold through Indian arm

Nirmala Sitharaman. Pic/PTI

In a bid to provide a level-playing field, the government has decided not to levy 2 per cent 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 per cent equalisation levy if they have permanent establishment or they pay any income tax here.

However, foreign firms who are not paying any tax will have to pay. The digital tax introduced in April 2020, applies only to non-resident companies with annual revenues in excess of Rs 2 crore, and covers online sales of goods and services to Indians.

Fuel price cut for 1st time in a year
In the first reduction in rates in over a year, petrol price on Wednesday was cut by 18 paise per litre and diesel by 17 paise a litre as international oil prices tumbled to the lowest since early February.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever