{"act":{"id":"finance-act-2016","short_title":"The Finance Act, 2016","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2016-2017.","act_number":null,"act_year":2016,"enact_date":"2016-06-27","enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":276,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2016/"},"unit":"section","section":{"number":"165","heading":"Charge of equilisation levy on specified services","text":"[Charge of equilisation levy on specified services] 165. (1) On and from the date of commencement of this Chapter, there shall be charged an equalisation levy at the rate of six per cent of the amount of consideration for any specified service received or receivable by a person, being a non-resident from— (i) | a person resident in India and carrying on business or profession; or (ii) | a non-resident having a permanent establishment in India. (2) The equalisation levy under sub-section (1) shall not be charged, where— (a) | the non-resident providing the specified service has a permanent establishment in India and the specified service is effectively connected with such permanent establishment; (b) | the aggregate amount of consideration for specified service received or receivable in a previous year by the non-resident from a person resident in India and carrying on business or profession, or from a non-resident having a permanent establishment in India, does not exceed one lakh rupees; or (c) | where the payment for the specified service by the person resident in India, or the permanent establishment in India is not for the purposes of carrying out business or profession. 1[(3) The provisions of this section shall not apply to any consideration for any specified service received or receivable by a person on or after the 1st day of April, 2025.] 1. Inserted by the Finance Act, 2025, w.e.f. 1-4-2025.","html":"<p><sup></sup><b>[<i>Charge of equilisation levy on specified services</i>]</b></p><p><b>165</b>. (1) On and from the date of commencement of this Chapter, there shall be charged an equalisation levy at the rate of six per cent of the amount of consideration for any specified service received or receivable by a person, being a non-resident from—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>a person resident in India and carrying on business or profession; or</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>a non-resident having a permanent establishment in India.</td></tr></table></div><p><span class=\"num\">(2)</span> The equalisation levy under sub-section (1) shall not be charged, where—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>the non-resident providing the specified service has a permanent establishment in India and the specified service is effectively connected with such permanent establishment;</td></tr><tr><td>(<i>b</i>)</td><td></td><td>the aggregate amount of consideration for specified service received or receivable in a previous year by the non-resident from a person resident in India and carrying on business or profession, or from a non-resident having a permanent establishment in India, does not exceed one lakh rupees; or</td></tr><tr><td>(<i>c</i>)</td><td></td><td>where the payment for the specified service by the person resident in India, or the permanent establishment in India is not for the purposes of carrying out business or profession.</td></tr></table></div><p><sup>1</sup>[<i>(3) The provisions of this section shall not apply to any consideration for any specified service received or receivable by a person on or after the 1st day of April, 2025.</i>]</p><p>1. Inserted by the Finance Act, 2025, w.e.f. <b>1-4-2025</b>.</p>","words":234,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2016/section/165/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}