Penalty for failure to deduct or pay equalisation levy

Q: When was Section 171 of the Finance Act enacted?

Section 171 of the Finance Act, cited as Finance Act 2016 171, 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 171 of the Finance Act, 2016 deals with penalty for failure to deduct or pay equalisation levy. Penalty for failure to deduct or pay equalisation levy. The Act was enacted on 27 Jun 2016.

Penalty for failure to deduct or pay equalisation levy.
171. Any [assessee or e-commerce operator] who—
(a) fails to deduct the whole or any part of the equalisation levy as required under section 166; or
[(aa) fails to pay the whole or any part of the equalisation levy asrequired under section 166A; or]
(b) having deducted the [equalisation levy referred to in sub-section (1) of section 165], fails to pay such levy to the credit of the Central Government in accordance with the provisions of sub-section (2) of that section,
shall be liable to pay,—
(i) in the case referred to in clause (a), in addition to paying the levy in accordance with the provisions of sub-section (3) of that section, or interest, if any, in accordance with the provisions of section 170, a penalty equal to the amount of equalisation levy that he failed to [deduct;
(ia) in the case referred to in clause (aa), in addition to the levy in accordance with the provisions of that section, or interest, if any, in accordance with the provisions of section 170, a penalty equal to the amount of equalisation levy that he failed to pay; and]
(ii) in the case referred to in clause (b), in addition to paying the levy in accordance with the provisions of sub-section (2) of that section and interest in accordance with the provisions of section 170, a penalty of one thousand rupees for every day during which the failure continues, so, however, that the penalty under this clause shall not exceed the amount of equalisation levy that he failed to pay.
1. Substituted for "assessee" by the Finance Act, 2020, w.e.f. 1-4-2020.
2. Inserted by the Finance Act, 2020, w.e.f. 1-4-2020.
3. Substituted for "equalisation levy" by the Finance Act, 2020, w.e.f. 1-4-2020.
4. Substituted for "deduct and" by the Finance Act, 2020, w.e.f. 1-4-2020.
Section 171, 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

Referred to by 1

s. 173 Penalty not to be imposed in certain cases

Questions about Section 171

What does Section 171 of the Finance Act deal with?

Section 171 of the Finance Act is headed "Penalty for failure to deduct or pay equalisation levy". Penalty for failure to deduct or pay equalisation levy.

How do I find court cases under Section 171 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 171, section 171 Finance Act 2016, section 171 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 171 of the Finance Act, and has it changed?

Its own text turns on section 165 (Charge of equilisation levy on specified services), section 166 (Collection and recovery of equalisation levy on specified services), section 166A (Collection and recovery of equalisation levy on e-commerce supply or services), section 170 (Interest on delayed payment of equalisation levy), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was Section 171 of the Finance Act enacted?

Section 171 of the Finance Act, cited as Finance Act 2016 171, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

Other sections of this Act

Fourth Schedule. Fourth Schedule21791 words
Eighth Schedule. Eighth Schedule19903 words
First Schedule. First Schedule8145 words
2. Income-tax3742 words
222. Insertion of new Chapter III F2100 words
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.

(a)		fails to deduct the whole or any part of the equalisation levy as required under section 166; or
[(aa)		fails to pay the whole or any part of the equalisation levy asrequired under section 166A; or]
(b)		having deducted the [equalisation levy referred to in sub-section (1) of section 165], fails to pay such levy to the credit of the Central Government in accordance with the provisions of sub-section (2) of that section,
		shall be liable to pay,—

(i)		in the case referred to in clause (a), in addition to paying the levy in accordance with the provisions of sub-section (3) of that section, or interest, if any, in accordance with the provisions of section 170, a penalty equal to the amount of equalisation levy that he failed to [deduct;
(ia)		in the case referred to in clause (aa), in addition to the levy in accordance with the provisions of that section, or interest, if any, in accordance with the provisions of section 170, a penalty equal to the amount of equalisation levy that he failed to pay; and]
(ii)		in the case referred to in clause (b), in addition to paying the levy in accordance with the provisions of sub-section (2) of that section and interest in accordance with the provisions of section 170, a penalty of one thousand rupees for every day during which the failure continues, so, however, that the penalty under this clause shall not exceed the amount of equalisation levy that he failed to pay.