CBDT Notifies Jurisdiction of Assessing Officer for Equalisation Levy

cbdt-notifies-jurisdiction-of-assessing-officer-for-equalisation-levy

CBDT has vide Notification No. 20/2020 dated 20.03.2020 notified the Assessing Officers who are authorized to exercise jurisdiction for Equalisation Levy introduced by Finance Act, 2016.

'Equalisation Levy' was introduced by the Finance Act, 2016 as Chapter-VIII of the Act. A committee constituted by the Central Board of Direct Taxes (CBDT) has recommended for the levy of tax on most digital services. 

The Committee constituted to examine taxation of E-Commerce, has recommended that Equalization Levy may be imposed at a rate of six to eight per cent, on any consideration of more than one lakh rupees received by a non-resident from a resident of India or from a permanent establishment in India for certain specified digital services, including online advertising, any services for online advertising and digital advertising space.

The Finance Bill, 2016 proposes, with effect from July 1, 2016, 'Equalization Levy' at the rate of 6% of the amount of consideration for specified services received or receivable by a non-resident, from a resident in India who carries out business or profession, or from a non-resident having a permanent establishment in India, where the aggregate amount of consideration received in a year exceeds one lakh rupees. The proposed levy will have no direct impact on consumers as it is applicable only to business to business transaction.

This Notification is issued for authorizing 'Assessing Officers' under section 164(b) of the Finance Act, 2016 which falls under Chapter VIII of the Act.

As per section 164(b), (b) “Assessing Officer” means the Income-tax Officer or Assistant Commissioner of Income-tax or Deputy Commissioner of Income-tax or Joint Commissioner of Income-tax or Additional Commissioner of Income-tax who is authorised by the Board to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Chapter."

Section 178 provides for applicability of certain provisions of Income-tax Act to Equalisation Levy which includes section 120 of the Income Tax Act, which deals with the jurisdiction of income-tax authorities.



Read the full text of the Notification 20/2020 dated 20.03.2020

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 20th March, 2020

(INCOME TAX)

S.O. 1189(E).— In exercise of the powers conferred by clause(b) of section 164 and section 178 of the Finance Act, 2016 (28 of 2016) read with sub-sections(1) and (2) of section 120 of the Income-tax Act, 1961, (43 of 1961) the Central Board of Direct Taxes hereby authorizes the Assessing Officer working in the Principal Chief Commissioner of Income-tax (international Taxation) Region having Jurisdiction in respect of the assessees for the purpose of the Income-tax Act, 1961, to exercise or perform all or any of the powers and functions conferred on, or, assigned to an Assessing Officer for the purpose of Chapter VIII of Finance Act, 2016 .

[Notification No. 20/F. No.189/3/2020-ITA-I]

PRAJNA PARAMITA, Director

Download Copy of Notification No. 20/2020 dated 20.03.2020 in pdf format.

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