Amendment of Act 28 of 2016

In force As on 07 Oct 2026

Ministry Finance

Section 171 of the Finance Act, 2021 deals with amendment of Act 28 of 2016. PART XV AMENDMENTS TO THE FINANCE ACT, 2016 Amendment of Act 28 of 2016.

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.
Section 171, The Finance Act, 2021.

Cross-references

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

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Questions about Section 171

What does Section 171 of the Finance Act deal with?

Section 171 of the Finance Act is headed "Amendment of Act 28 of 2016". PART XV AMENDMENTS TO THE FINANCE ACT, 2016 Amendment of Act 28 of 2016.

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 2021 171, section 171 Finance Act 2021, 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 90 (Amendment of section 5), section 163 (Amendment of Act 58 of 2002), section 164 (Commencement of this Part), so none of them can safely be read on its own.

When was the Finance Act enacted?

Finance Act was enacted in 2021. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

Fourth Schedule. Fourth Schedule26628 words
First Schedule. First Schedule9574 words
2. Income-tax5993 words
6. Amendment of section 103582 words
130. Substitution of new section for section 43513 words
131. Substitution of new section for section 52699 words

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(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;';

(A)		in the opening portion, for the words 'section, "specified circumstances" mean—', the following shall be substituted, namely:—
		'section,—

(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.".