{"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":"165A","heading":"Charge of equalisation levy on e-commerce supply of services","text":"[Charge of equalisation levy on e-commerce supply of services. 165A. (1) On and from the 1st day of April, 2020, there shall be charged an equalisation levy at the rate of two per cent. of the amount of considerationreceived or receivable by an e-commerce operator from e-commerce supply orservices made or provided or facilitated by it— (i) | to a person resident in India; or (ii) | to a non-resident in the specified circumstances as referred to in sub-section (3); or (iii) | to a person who buys such goods or services or both usinginternet protocol address located in India. (2) The equalisation levy under sub-section (1) shall not be charged— (i) | where the e-commerce operator making or providing or facilitating e-commerce supply or services has a permanent establishment in Indiaand such e-commerce supply or services is effectively connected with such permanent establishment; (ii) | where the equalisation levy is leviable under section 165; or (iii) | sales, turnover or gross receipts, as the case may be, of the e-commerce operator from the e-commerce supply or services made or provided or facilitated as referred to in sub-section (1) is less than two crore rupees during the previous year. (3) For the purposes of this [section,— (a) | \"specified circumstances\" mean—] (i) | sale of advertisement, which targets a customer, who is residentin India or acustomer who accesses the advertisement though internet protocol address located in India; and (ii) | sale of data, collected from a person who is resident in India or from a person who uses internet protocol address located in India.] [(b) | consideration received or receivable from e-commerce supply or services shall include— (i) | consideration for sale of goods irrespective of whether the e-commerce operator owns the goods, so, however, that it shall not include consideration for sale of such goods which are owned by a person resident in India or by a permanent establishment in India of a person non-resident in India, if sale of such goods is effectively connected with such permanent establishment. (ii) | consideration for provision of services irrespective of whether service is provided or facilitated by the e-commerce operator, so, however, that it shall not include consideration for provision of services which are provided by a person resident in India or by permanent establishment in India of a person non-resident in India, if provision of such services is effectively connected with such permanent establishment.] [(4) The provisions of this section shall not apply to any consideration received or receivable by an e-commerce operator from e-commerce supply or services made or provided or facilitated by it on or after the 1st day of August, 2024.]","html":"<p><b>[Charge of equalisation levy on e-commerce supply of services.</b></p><p><b>165A</b>.<i> (1) On and from the 1st day of April, 2020, there shall be charged an equalisation levy at the rate of two per cent. of the amount of considerationreceived or receivable by an e-commerce operator from e-commerce supply orservices made or provided or facilitated by it—</i></p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td><i>(</i>i<i>)</i></td><td></td><td><i>to a person resident in India; or</i></td></tr><tr><td><i>(</i>ii<i>)</i></td><td></td><td><i>to a non-resident in the specified circumstances as referred to in sub-section (3); or</i></td></tr><tr><td><i>(</i>iii<i>)</i></td><td></td><td><i>to a person who buys such goods or services or both usinginternet protocol address located in India.</i></td></tr></table></div><p><i>(2) The equalisation levy under sub-section (1) shall not be charged—</i></p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td><i>(</i>i<i>)</i></td><td></td><td><i>where the e-commerce operator making or providing or facilitating e-commerce supply or services has a permanent establishment in Indiaand such e-commerce supply or services is effectively connected with such permanent establishment;</i></td></tr><tr><td><i>(</i>ii<i>)</i></td><td></td><td><i>where the equalisation levy is leviable under section 165; or</i></td></tr><tr><td><i>(</i>iii<i>)</i></td><td></td><td><i>sales, turnover or gross receipts, as the case may be, of the e-commerce operator from the e-commerce supply or services made or provided or facilitated as referred to in sub-section (1) is less than two crore rupees during the previous year.</i></td></tr></table></div><p><span class=\"num\">(3)</span> For the purposes of this <b>[</b><i>section,—</i></p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td><i>(</i>a<i>)</i></td><td></td><td><i>\"specified circumstances\" mean—</i><b>]</b></td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td><i>(</i>i<i>)</i></td><td></td><td><i>sale of advertisement, which targets a customer, who is residentin India or acustomer who accesses the advertisement though internet protocol address located in India; and</i></td></tr><tr><td><i>(</i>ii<i>)</i></td><td></td><td><i>sale of data, collected from a person who is resident in India or from a person who uses internet protocol address located in India.]</i></td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td><b>[</b><i>(</i>b<i>)</i></td><td></td><td><i> consideration received or receivable from e-commerce supply or services shall include—</i></td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td><i>(</i>i<i>)</i></td><td></td><td><i>consideration for sale of goods irrespective of whether the e-commerce operator owns the goods, so, however, that it shall not include consideration for sale of such goods which are owned by a person resident in India or by a permanent establishment in India of a person non-resident in India, if sale of such goods is effectively connected with such permanent establishment.</i></td></tr><tr><td><i>(</i>ii<i>)</i></td><td></td><td><i>consideration for provision of services irrespective of whether service is provided or facilitated by the e-commerce operator, so, however, that it shall not include consideration for provision of services which are provided by a person resident in India or by permanent establishment in India of a person non-resident in India, if provision of such services is effectively connected with such permanent establishment.</i><b>]</b></td></tr></table></div><p><b>[</b><i>(4) The provisions of this section shall not apply to any consideration received or receivable by an e-commerce operator from e-commerce supply or services made or provided or facilitated by it on or after the 1st day of August, 2024</i>.<b>]</b></p>","words":444,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2016/section/165A/","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."}