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India, USA agree to work on leveling tax for e-com services

India and the United States October 21 Joint Statement India’s 2% leveling tax claim on the e-commerce supply of services and the US trade behavior regarding such leveling tax shall apply between the United States and India. The final terms of the contract will be finalized by February 1, 2022.

The provisional period applicable is from April 1, 2022 to the implementation of Pillar 1 or March 31, 2024, whichever comes first.

In a media release, the Treasury said India and the United States will continue to work closely to understand their commitments in common and strive to resolve further disagreements on this issue through constructive dialogue. ..

India and the United States are subject to the terms applicable under the October 21 Joint Statement between the United States and India regarding India’s 2% leveling levy on the supply of e-commerce services and US trade behavior. I agreed to do so. Leveling Levy said. The final terms of the contract will be finalized by February 1, 2022.

On October 8, 2021, India and the United States joined the other 134 members of the OECD / G20 Comprehensive Framework (including Austria, France, Italy, Spain and the United Kingdom) and settled by two pillars to deal with taxes. An agreement has been reached on a statement on the plan. Challenges arising from the digitization of the economy.

On October 21, 2021, the United States and Austria, France, Italy, Spain and the United Kingdom reached an agreement on a transitional approach to existing one-sided measures while implementing the first pillar. This agreement is reflected in the joint statement issued by these six companies. Country on that date (October 21 Joint Statement).

Under the circumstances defined under the agreement between the United States and Austria, France, Italy, Spain and the United Kingdom, DST liabilities incurred by US companies during the interim period will be incurred under the first pillar of the OECD Agreement in the future. Will be deducted from your income tax. In return, the United States terminates its currently suspended additional obligations on Austrian, French, Italian, Spanish, and UK goods adopted in the DST Section 301 investigation.

Fiber2Fashion News Desk (KD)



India, USA agree to work on leveling tax for e-com services

Source link India, USA agree to work on leveling tax for e-com services

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