Lok Sabha clears Finance Bill with 127 amendments

Lok Sabha clears Finance Bill with 127 amendments

The Lok Sabha on Tuesday passed the Finance Bill, 2021, with finance minister Nirmala Sitharaman introducing fresh amendments giving relief to foreign e-commerce firms. The amendment means offshore e-commerce platforms don’t have to pay 2% equalization levy, or digital service tax on that portion of goods which are sourced from India.

“Through the amendment I am moving today, I intend to clarify that equalization levy is not applicable on consideration for goods which are owned by Indian residents,” Sitharaman said during a day-long debate on the bill.

The digital tax, rolled out on 1 April 2020, applies only to non-resident companies with annual revenues in excess of RS. 2 crore, and covers online sales of goods and services to Indians.