India, U.S Extend Equalization Levy Deadline on E-Commerce Transactions

India and the US have extended the 2% digital equalization levy on e-commerce transactions until June 30, 2024, addressing Q1 FY 2024–25 taxation issues. This levy, originally set to expire on March 31, 2024, will see final guidelines for Q2 FY 2025 and beyond in the upcoming July union budget. The levy, part of a two-pillar solution agreed upon by India, the US, and 134 OECD/G20 members in 2021, targets non-resident e-commerce operators earning over INR 100,000 annually. This extension aims to balance tax obligations between countries hosting digital companies and their market jurisdictions, while OECD’s Pillar Two introduces a global 15% minimum tax to curb tax evasion and harmonize international tax laws.