WASHINGTON, 27 March, 2021 (TON): A retaliation action has been proposed by the U.S. against the taxation including the equalization levy (EL) on Indian and other countries’ digital services.

In response, New Delhi says it will examine the proposed action and will act accordingly.

"The government of India will examine the proposed action with stakeholders concerned and take suitable measures keeping its trade and commercial interest of the country and overall interest of its people," media said.

The others countries under probe are Italy, Turkey, the United Kingdom, Spain and Austria.
On January 6, the USTR released its findings on section 301 investigation into India's digital services tax (DST) and concluded that it discriminates against U.S. digital companies by its structure and operation.

Meanwhile, India's DST is unreasonable as it is inconsistent with principles of international taxation, including due to its application to revenue rather than income, extraterritorial application and failure to provide tax certainty as per the findings.