Section165A

The Finance Act, 2016

Charge of equalisation levy on e-commerce supply of services

Q: When was Section 165A of the Finance Act enacted?

Section 165A of the Finance Act, cited as Finance Act 2016 165A, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

In force As on 07 Oct 2026

Ministry Finance Enacted 27 Jun 2016 Cited by 1 provision

Section 165A of the Finance Act, 2016 deals with charge of equalisation levy on e-commerce supply of services. [Charge of equalisation levy on e-commerce supply of services. The Act was enacted on 27 Jun 2016.

[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.]
Section 165A, The Finance Act, 2016.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

s. 165 Charge of equilisation levy on specified services

Referred to by 1

s. 166A Collection and recovery of equalisation levy on e-commerce supply or services

Questions about Section 165A

What does Section 165A of the Finance Act deal with?

Section 165A of the Finance Act is headed "Charge of equalisation levy on e-commerce supply of services". [Charge of equalisation levy on e-commerce supply of services.

How do I find court cases under Section 165A of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2016 165A, section 165A Finance Act 2016, section 165A of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 165A of the Finance Act, and has it changed?

Its own text turns on section 165 (Charge of equilisation levy on specified services), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was Section 165A of the Finance Act enacted?

Section 165A of the Finance Act, cited as Finance Act 2016 165A, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

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Eighth Schedule. Eighth Schedule19903 words
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70. Substitution of new section for section 1531931 words

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.

(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.

(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.

(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.]

(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.]