India opposes two per cent tax on foreign procurement imposed by US

Government today said the recent US legislation imposing a two per cent tax on foreign procurement and extending the present visa fee till 2015 will create a bias against the Indian IT sector.  The US government has recently passed a bill –James Zadroga 9/11 Health and Compensation Act– that will impose two per cent tax on the US government procurement from foreign companies and also extend the present visa fee on certain categories by one more year from 2014 to 2015.

Terming the new law as a “retrograde” step, Minister of State for IT and Communication Sachin Pilot said “such legislations will only seek to undermine the contributions of the Indian IT and tech companies to the US.