Equalization levy

Equalization levy or digital service tax (DST) is a direct tax introduced by India in 2016 to tax digital business to business (B2B) transactions. This taxes income accruing to e-commerce companies abroad from India. India levies a 2% DST on tech majors like Apple, Google and facebook. Recently, the US highlighted that 72% of companies being subject to DST are American and found the levy ‘actionable’ under section 301 of its Trade Act.