Amendment of Act 28 of 2016

Section 153 of the Finance Act, 2020 deals with amendment of Act 28 of 2016. Amendment of Act 28 of 2016. 153. In the Finance Act, 2016,— (i) | in section 163, in sub-section (3), for the word "Chapter", the words, letters and figures "Chapter, and to consideration received or receivable for e-commerce supply or services made or provided or facilitated on or after the 1st da

Amendment of Act 28 of 2016.

153. In the Finance Act, 2016,—

(i)		in section 163, in sub-section (3), for the word "Chapter", the words, letters and figures "Chapter, and to consideration received or receivable for e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2020" shall be substituted;
(ii)		in section 164,—

(A)

after clause (c), the following clause shall be inserted, namely:—

'(ca)		"e-commerce operator" means a non-resident who owns, operates or manages digital or electronic facility or platform for online sale of goods or online provision of services or both;
(cb)		"e-commerce supply or services" means—

(i)		online sale of goods owned by the e-commerce operator; or
(ii)		online provision of services provided by the e-commerce operator; or
(iii)		online sale of goods or provision of services or both, facilitated by the e-commerce operator; or
(iv)		any combination of activities listed in clause (i), (ii) or clause (iii)';

(B)

in clause (d), after the words "specified service", the words "or e-commerce supply or services" shall be inserted;

(iii)		in section 165, for the marginal heading, the following marginal heading shall be substituted, namely:—
		"Charge of equalisation levy on specified services.";
(iv)		after section 165, the following section shall be inserted, namely:—
		'165A. Charge of equalisation levy on e-commerce supply or services.—(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 consideration received or receivable by an e-commerce operator from e-commerce supply or services 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 using internet 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 India and 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, "specified circumstances" mean—

(i)		sale of advertisement, which targets a customer, who is resident in India or a customer who accesses the advertisement through 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.';

(v)		in section 166, in sub-section (1), for the words "equalisation levy", the words, brackets and figures "equalisation levy referred to in sub-section (1) of section 165" shall be substituted;
(vi)		in section 166, for the marginal heading, the following marginal heading shall be substituted, namely:—
		"Collection and recovery of equalisation levy on specified services.";
(vii)		after section 166, the following section shall be inserted, namely:—
		"166A. Collection and recovery of equalisation levy on e-commerce supply or services.—The equalisation levy referred to in sub-section (1) of section 165A, shall be paid by every e-commerce operator to the credit of the Central Government for the quarter of the financial year ending with the date specified in column (2) of the Table below by the due date specified in the corresponding entry in column (3) of the said Table:

TABLE

	Serial number	Date of ending of the quarter of financial year	Due date of the financial year
	(1)	(2)	(3)
	1.	30th June	7th July
	2.	30th September	7th October
	3.	31st December	7th January
	4.	31st March	31st March.";

(viii)

in section 167,—

(A)

in sub-section (1),—

(a)		for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(b)		for the words "specified services", the words "specified services or e-commerce supply or services, as the case may be," shall be substituted;

(B)

in sub-section (2),—

(a)		for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(b)		for the words "specified services was provided", the words "specified services was provided or e-commerce supply or services was made or provided or facilitated" shall be substituted;

(C)

in sub-section (3), for the word "assessee" at both the places where it occurs, the words "assessee or e- commerce operator" shall be substituted;

(ix)

in section 168,—

(i)

in sub-section (1),—

(A)		for the word "assessee" wherever it occurs, the words "assessee or e-commerce operator" shall be substituted;
(B)		in clause (b), for the words "sum deductible", the words "sum deductible or payable, as the case may be," shall be substituted;
(C)		in clause (c), for the word and figures "section 166", the words, figures and letter "section 166 or section 166A" shall be substituted;
(D)		in the proviso, for the word "statement", the words "statement or revised statement" shall be substituted;

(ii)

in sub-section (2), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;

(x)

in section 169,—

(i)		in sub-section (2), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(ii)		in sub-section (3), for the word "assessee" wherever it occurs, the words "assessee or e-commerce operator" shall be substituted;
(iii)		in sub-section (4), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;

(xi)

in section 170,—

(A)		for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(B)		for the word and figures "section 166", the words, figures and letter "section 166 or section 166A" shall be substituted;

(xii)

in section 171,—

(i)		for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(ii)		after clause (a), the following clause shall be inserted, namely:—

"(aa)

fails to pay the whole or any part of the equalisation levy as required under section 166A; or";

(iii)

in clause (b),—

(a)		for the words "equalisation levy", the words, brackets and figures "equalisation levy referred to in sub- section (1) of section 165" shall be substituted;
(b)		in the long line, in sub-clause (i), for the words "deduct; and", the following shall be substituted, namely:—
		"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";

(xiii)		in section 172, for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(xiv)		in section 173,—

(i)		in sub-section (1), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(ii)		in sub-section (2), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;

(xv)		in section 174, in sub-section (1), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(xvi)		in section 175,—

(i)		in sub-section (1), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;
(ii)		in sub-section (3), for the word "assessee", the words "assessee or e-commerce operator" shall be substituted;

(xvii)		in section 178, for the word and figures "sections 120", the word and figures "sections 119, 120" shall be substituted;
(xviii)		in section 180, in sub-section (1), for the words "expiry of a period of two years from the date on which the provisions of this Chapter come into force", the figures, letters and words "31st day of March, 2022" shall be substituted.

Section 153, The Finance Act, 2020.