Is India’s Digital Services Tax discriminatory?

Last month, a United States Trade Representative investigation report found India’s Digital Services Tax 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. Here we discuss this issue. Guests: Nikhil Kapoor, a Research Fellow at the Vidhi Centre for Legal Policy; Suranjali Tandon, an Assistant Professor, National Institute of Public Finance and Policy Host: Sriram Srinivasan Read the Parley article here. You can now find The Hindu’s podcasts on Spotify, Apple Podcasts and Stitcher. Search for Parley by The Hindu. Write to us with comments and feedback at [email protected]