The row over the recent U.S. Trade Representative (USTR) probe report that flagged India’s digital services tax, the Equalisation Levy, as being “inconsistent” with U.S. trade policies, may well test the tone of the new administration under President Joe Biden on tax issues facing Indo-U.S. businesses. U.S. lawmakers, irrespective of their political affiliations, have been known to be touchy about taxing of American digital businesses.
What is also keeping many Indian and American businesses on tenterhooks are the new administration’s poll campaign proposals to raise corporate taxes and measures to discourage offshoring and encourage onshoring of U.S. goods and services. With the Democrats enjoying a majority in the Congress, the Biden administration gets more leeway to implement its tax proposals.
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