The US has once again expressed its strong objection to the digital service tax imposed in India. The US Department of Industry states that countries such as India, Italy and Turkey are discriminating against US companies in terms of digital service tax, which allows the US to increase duties on goods imported from these countries.
The US has termed digital service tax levied by India against international standards. The investigation was started a few months ago in the US regarding digital tax levied in India, the report of which was released on Wednesday. America has said that action is not being taken against India in this matter, but evaluation of all options will continue.
This warning from the US is also important because America is facing a digital tax on American companies in France has imposed a duty of 25 percent on some goods there. There is also a possibility that such action may be taken against Turkey, India, and Italy before Donald Trump's departure on 20 January. The imposition of the digital tax is affecting the big American companies like Google, Apple, and Amazon.
The digital tax was introduced in India from 1st April last year. On the other hand, according to the sources of the Ministry of Commerce and Industry of India, the government will take the further decision in this matter keeping in mind the national interest. In the digital world, a seller can sell his goods from anywhere. In such a situation, the government of that country has the statutory right to levy a tax on such transactions.