Equalisation Levy (Amendment) Rules, 2020

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 28th October, 2020

EQUALISATION LEVY

S.O. 3865(E).—In exercise of the powers conferred by sub-section (1) and sub-section (2) of Section 179 of the Finance Act, 2016 (28 of 2016), the Central Government hereby makes the following rules to amend the Equalisation levy Rules, 2016, namely:-

1. Short title and commencement. ─ (1) These rules may be called the Equalisation levy (Amendment) Rules,2020.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Equalisation levy Rules, 2016 (hereinafter referred to as the said rules), in rule 2, after clause (a), the following clause shall be inserted, namely:-

‘(aa) “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the statement of specified services as per the data structure and standards laid down by the Principal Director- General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be;’.

3. In the said rules, in rule 3,-

(a) in the heading, the words “for specified services” shall be omitted;

(b) for the words “The amount of consideration, for specified services and”, the words, “The amount of consideration” shall be substituted.

4. In the said rules, for rules 4 and 5, the following shall be substituted, namely:-

“4. Payment of Equalisation levy. ─ The assessee or e-commerce operator, as the case may be, who are required to deduct and pay equalisation levy, shall pay the amount of such levy, by remitting it into the Reserve Bank of India or in any branch of the State Bank of India or of any authorised Bank accompanied by an equalisation levy challan.

5. Statement of specified services or e-commerce supply or services. ─ (1) The statement required to be furnished under sub-section (1) or sub-section (2) of section 167 of the Act shall be in Form No. 1, duly verified in the manner indicated therein, and may be furnished by the assessee or e-commerce operator, as the case may be, in the following manner, namely:-

(i) electronically under digital signature; or

(ii) electronically through electronic verification code.

(2) The statement in Form No. 1 required to be furnished under sub-section (1) of section 167 of the Act shall be furnished on or before the 30th day of June immediately following that financial year.

(3) The Principal Director-General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, for the purpose of ensuring secure capture and transmission of data, shall-

(i) lay down the procedure for electronic filing of Form No.1;

(ii) lay down the data structure, standards and manner of generation of electronic verification code, referred to in sub rule (2), for the purpose of verification of the person furnishing the said form;

(iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished; and

(iv) specify the manner of furnishing the revised statement required to be furnished under sub-section (2) of section 167 of the Act.”

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