About Equalisation Levy

• The 2% equalisation levy was introduced in the 2020-21 Budget and came into effect from April 1.
• It is a direct tax levied on any purchase by an Indian or India-based entity through an overseas e-commerce platform.
• The levy is seen aimed at taxing foreign companies which have a significant local client base in India but were billing them through their offshore units, effectively escaping the country’s tax system.
• The deadline for payment of the first installment for April-June is July 7.

Why in News?

• The government recently said it is not considering extending the deadline for payment of Equalisation Levy by non-resident e-commerce players.
• Earlier, the U.S.-India Strategic Partnership Forum (USISPF) urged the finance ministry to defer the tax or postpone the date for payment.

About USISPF

• The US-India Strategic Partnership Forum is a non-profit organization, with the primary objective of strengthening the U.S.-India bilateral and strategic partnership.