India: Announced India-USA agreement on transitional approach for OECD/G20 Inclusive Framework Implementation of Pillar One

The India and USA have agreed that the "Equalisation levy" on e-commerce supply of services will be removed when the OECD/G20 Inclusive Framework Implementation of Pillar One will be fully implemented. Moreover, the levy paid between 1 April 2022 and the earlier date between the implementation of Pillar One and 31 March 2024 will constitute a credit against future taxes in India. The final terms of the Agreement will be finalised by 1 February 2022.