India tells US: 2% equalisation levy is non-discriminatory

Terming it as a fair, reasonable and non-discriminatory, India has defended the 2 per cent equalisation levy on non-resident e-commerce companies.

In a six-page written submission to the United States Trade Representative (USTR), India said the levy is applicable only for companies with annual revenues in excess of Rs 20 million (about $267,000), which is a low threshold aimed at exempting very small e-commerce operators globally, adding that India is ready to engage in bilateral discussions with the US on the matter.

“It does not discriminate against companies based in the United States as it applies equally to all non-resident e-commerce operators not having permanent establishment in India, irrespective of the origin of such companies,” India has said.