<h1>U.S. Investigates India's 2% Equalisation Levy u/s 301 for Discrimination Against U.S. Companies in Digital Taxation.</h1> The U.S. initiated an investigation under section 301 of the U.S. Trade Act, 1974, into digital service taxes, including India's 2% Equalisation Levy (EL) on e-commerce services. The U.S. questioned whether the EL discriminated against U.S. companies and diverged from international tax norms. India defended the EL, stating it ensures fair competition and applies equally to all non-resident e-commerce operators with significant economic presence in India. The levy is prospective, not retroactive, and aligns with OECD/G20 recommendations. Despite India's clarifications, the U.S. concluded the EL is discriminatory. India plans to review the U.S. findings and respond appropriately.