{"act":{"id":"finance-act-2021","short_title":"The Finance Act, 2021","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2021-2022.","act_number":null,"act_year":2021,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":180,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2021/"},"unit":"section","section":{"number":"171","heading":"Amendment of Act 28 of 2016","text":"PART XV AMENDMENTS TO THE FINANCE ACT, 2016 Amendment of Act 28 of 2016. 171. In the Finance Act, 2016,— (a) | the following amendments shall be made and shall be deemed to have been made with effect from the 1st day of April, 2020, namely:— (i) | in section 163, in sub-section (3), the following proviso shall be inserted, namely:— \"Provided that the consideration received or receivable for specified services and for e-commerce supply or services shall not include the consideration, which are taxable as royalty or fees for technical services in India under the Income-tax Act, read with the agreement notified by the Central Government under section 90 or section 90A of the said Act.\"; (ii) | in section 164, in clause (cb), the following Explanation shall be inserted, namely:— 'Explanation.—For the purposes of this clause, \"online sale of goods\" and \"online provision of services\" shall include one or more of the following online activities, namely:— (a) | acceptance of offer for sale; or (b) | placing of purchase order; or (c) | acceptance of the purchase order; or (d) | payment of consideration; or (e) | supply of goods or provision of services, partly or wholly;'; (iii) | in section 165A, in sub-section (3),— (A) | in the opening portion, for the words 'section, \"specified circumstances\" mean—', the following shall be substituted, namely:— 'section,— (a) | \"specified circumstances\" mean—'; (B) | after clause (a) as so amended, the following clause shall be inserted, namely:— \"(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.\". (b) | in section 191, in the proviso, after the word \"refundable\", the words \"without any interest\" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016.","html":"PART XV
AMENDMENTS TO THE FINANCE ACT, 2016
Amendment of Act 28 of 2016.
171. In the Finance Act, 2016,—
| (a) | | the following amendments shall be made and shall be deemed to have been made with effect from the 1st day of April, 2020, namely:— |
| (i) | | in section 163, in sub-section (3), the following proviso shall be inserted, namely:— |
| | \"Provided that the consideration received or receivable for specified services and for e-commerce supply or services shall not include the consideration, which are taxable as royalty or fees for technical services in India under the Income-tax Act, read with the agreement notified by the Central Government under section 90 or section 90A of the said Act.\"; |
| (ii) | | in section 164, in clause (cb), the following Explanation shall be inserted, namely:— |
| | 'Explanation.—For the purposes of this clause, \"online sale of goods\" and \"online provision of services\" shall include one or more of the following online activities, namely:— |
| (a) | | acceptance of offer for sale; or |
| (b) | | placing of purchase order; or |
| (c) | | acceptance of the purchase order; or |
| (d) | | payment of consideration; or |
| (e) | | supply of goods or provision of services, partly or wholly;'; |
| (iii) | | in section 165A, in sub-section (3),— |
| (A) | | in the opening portion, for the words 'section, \"specified circumstances\" mean—', the following shall be substituted, namely:— |
| | 'section,— |
| (a) | | \"specified circumstances\" mean—'; |
| (B) | | after clause (a) as so amended, the following clause shall be inserted, namely:— |
| | \"(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.\". |
| (b) | | in section 191, in the proviso, after the word \"refundable\", the words \"without any interest\" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016. |