Rationalisation of the provisions of Equalisation Levy on Ecommerce

SHARE:

Under section 165A of Finance Act, 2016, as inserted by section 153 of the Finance Act, 2020, Equalisation Levy is to be levied at the rate ...

Under section 165A of Finance Act, 2016, as inserted by section 153 of the Finance Act, 2020, Equalisation Levy is to be levied at the rate of two percent (2%). 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-
  1. (i) to a person resident in India; or
  2. (ii) to a non-resident in the specified circumstances as referred to in sub-section (3); or
  3. (iii) to a person who buys such goods or services or both, using internet protocol address located in India.
For this purpose, E-commerce supply or service is defined as to mean:-
  1. (i) online sale of goods owned by the e-commerce operator;
  2. (ii) online provision of services provided by the e-commerce operator;
  3. (iii) online sale of goods or provision of services or both, facilitated by the e-commerce operator; or
  4. (iv) any combination of activities listed in clause (i), (ii) or clause (iii);
Clause (50) of section 10 of the Act provides for the exemption for the income arising from any specified service provided on or after the date on which the provisions of Chapter VIII of the Finance Act, 2016 comes into force or arising from any e- commerce supply or services made or provided or facilitated on or after the 1st day of April, 2021 and chargeable to equalisation levy under that Chapter.

 It is seen that there is need for some clarification to correctly reflect the intention of various provisions concerning this levy. Hence, it is proposed to carry out the following amendments in the Finance Act, 2016:-
  • Insert an Explanation to section 163 of the Finance Act, 2016, clarifying that consideration received or receivable for specified services and consideration received or receivable for e-commerce supply or services shall not include 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 Income-tax Act.
  • Insert an Explanation to clause (cb) of section 164 of the Finance Act, 2016, providing that for the purposes of defining e-commerce supply or service, “online sale of goods” and “online provision of services” shall include one or more of the following activities taking place online:
      • (a) Acceptance of offer for sale;
      • (b) Placing the purchase order;
      • (c) Acceptance of the Purchase order;
      • (d) Payment of consideration; or
      • (e) Supply of goods or provision of services, partly or wholly
  • Amend section 165A of the Finance Act, 2016, to provide that 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; and
      • (ii) consideration for provision of services irrespective of whether service is provided or facilitated by the e-commerce operator.
These amendments will take effect retrospectively from 1st April, 2020.

It is also proposed to amend section 10(50) of the Act to -
  1. (i) provide that section 10(50) will apply for the e-commerce supply or services made or provided or facilitated on or after 1st April, 2020.
  2. (ii) clarify that exemption under section 10(50) will not apply for royalty or fees for technical services which is taxable under the Act read with the agreement notified by the Central Government under section 90 or section 90A of the Act.
  3. (iii) define e-commerce supply or services under section 10(50) as the meaning assigned to it in clause (cb) of section 164 of Chapter VIII of the Finance Act,2016.
This amendment will take effect from 1st April 2021 and will accordingly apply to the assessment year 2021-22 and subsequent assessment years.

COMMENTS

Subscribe our Youtube Channel
Name

269su,1,80-c,3,80CCD,2,aadhaar,1,accounts,4,advance-ruling,1,audit,4,banks,2,bonds,1,budget,20,budget-2019,3,budget-2020,2,budget-2021,15,calculator,1,capital-gains,1,cash,1,chartered-accountants,2,co-operative-housing-society,1,cop,1,deduction,6,depreciation,1,download,22,earning-tips,4,ebook,1,epf,1,equilisation-levy,1,excel,11,excel-2-tally,3,exempt-income,1,gst,16,gstp,2,icai,3,income-tax,50,income-tax-news,20,info,8,investments,1,list,2,mf,2,mp,2,ngo,3,notification,1,NPS,1,pan,2,society,3,tally,14,tax-audit,2,tcs,6,tdl,2,tds,11,tips,12,utility,7,
ltr
item
Saral Tax India: Rationalisation of the provisions of Equalisation Levy on Ecommerce
Rationalisation of the provisions of Equalisation Levy on Ecommerce
Saral Tax India
https://www.saraltaxindia.com/2021/02/equalisation-levy-on-ecommerce.html
https://www.saraltaxindia.com/
https://www.saraltaxindia.com/
https://www.saraltaxindia.com/2021/02/equalisation-levy-on-ecommerce.html
true
2873352319085116735
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy