Retaliatory Tariffs on Indian Goods Over DST to Be Terminated
The U.S. will not impose 25% tariffs on 26 tariff headings from India, which had about $119 million of exports to the U.S. in those categories in 2019, over India's digital services tax, the Office of the U.S. Trade Representative said Nov. 24.
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The settlement with the U.S. Treasury that will lead to the termination at the USTR of the Section 301 action does not mean India will not collect DSTs. It will, but any taxes paid between April 1, 2022, and the implementation of an international tax treaty that will change how multinationals like Facebook pay income taxes around the world, will apply to the Indian taxes due under the new system. If the tax treaty is not implemented before March 31, 2024, the taxes paid until that date will be credited for future income taxes.
This was the last of the agreements announced in the DST Section 301 actions.