With 2% levy abolished, overseas digital companies can breathe easy

The contentious equalisation levy of 2 %– on digital companies, online education-providing firms, and software-as-a-service providers without a permanent physical presence in India—will be abolished on August 1, finance minister Nirmala Sitharaman announced on Tuesday.

Designed to provide a level playing field for Indian ecommerce companies liable to local tax laws, the levy had grown to be a major point of contention between India and the US with several affected entities based there.