With reference to digital service tax DST consider the following statements India is the only countr...........

Economic Affairs Tax System

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With reference to digital service tax (DST), consider the following statements

India is the only country that imposes digital service tax.
In India 2% digital service tax is levied on trade and services by non-resident e-commerce operators.

Select the correct statement.

1 only

2 only

Both

None

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Explanation:

Recently, the Office of the United States Trade Representative (USTR) has said that the Digital services taxes adopted by India, Italy and Turkey discriminate against US companies and are inconsistent with international tax principles.

Digital Services Taxes (DSTs) are the adopted taxes on revenues that certain companies generate from providing certain digital services. E.g. digital multinationals like Google, Amazon and Apple etc.
The government had moved an amendment in the Finance Bill 2020-21 imposing a 2% digital service tax (DST) on trade and services by non-resident e-commerce operators with a turnover of over Rs. 2 crore.

Hence only statement 2nd is correct.