Explanation:

Digital Services Tax

• It is a levy on the overall revenues earned by the supplier of specific digital services.
• It is different from Netflix tax, which is essentially a “value-added tax” on digital services where the consumer bears the entire tax burden on the value of the final product.
• GAFA tax named after Google, Apple, Facebook, and Amazon is a French proposed digital tax that is to be levied on large technology and internet companies.

Recently India has expanded the scope of the Equalization Levy, or digital tax, to the sale of goods and services in the country by overseas e-commerce firms.

• The transactions were to be taxed at 2 per cent if businesses earned more than Rs 2 crore.
• The Equalization Levy was introduced for the first time in 2016 as 6% tax on revenues earned by non-residents from online advertising and related services.

Hence only statement 2nd is correct.