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US Trade RepresentativeOfUSTR) Section 301 barely checks four months after levy of 2% parity levy on e-commerce companies in India, four years after it imposed a tax on revenue generated on business-to-business digital advertisements and affiliate services. . Apart from India, the European Union, the UK, Austria, Brazil, the Czech Republic, Indonesia, Italy, Spain and Turkey are included.
Indian officials, however, said that the action is not targeted at India as it is meant to deal with the issue of digital taxation. “In addition, it is a consultation process that stems from initial concerns with India’s levy. USTR has stated that it will dismiss the comments of the American public about the potential impact of policies similar to India’s levy. Therefore, The USTR is still collecting facts about India’s policy and it may emerge that India’s uniform levy does not qualify as an unfair trade practice, ”said an official.
In the case of France, where the policy in the investigation was unfair and was a burden on American commerce, no tariffs have been imposed because the two sides are negotiating an outcome.
“It is a big business issue, there are many similar nature that companies will try to suppress and America will try and support. By big business issues, it means that there are issues like data localization where they (American companies) have pushed back and privacy laws, ”said Rahul Mathan, partner (head of technology practice) of the law firm Trikala.
The levy’s expansion to e-commerce players had prompted people like Netflix to ask for an explanation from the government, while lobby groups such as the Internet and Mobile Association of India had requested the government to bring it back to the ground. Apply “additional burden of new regulatory and compliance requirements” amid outbreaks.
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