Type:Notice
Citation:86 FR 2478
Reading Time:about 3 minutes
The Office of the United States Trade Representative (USTR) has issued a notice regarding India's Digital Services Tax (DST). The USTR found that India's DST is unfair or discriminatory and negatively impacts U.S. businesses. This tax applies only to non-resident companies and is imposed on revenue instead of income, which is against international tax principles. Further actions will be considered under Section 301 of the Trade Act to address these issues.
Simple Explanation
The U.S. noticed that India's rule about taxing companies from outside India is unfair to American businesses, like making them pay even if they don't earn profit there, and they plan to figure out what to do next.