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Equalisation Levy Rules, 2016

equalisation-levy -rules-2016

Text of Equalisation Levy Rules 2016 as amended by Equalisation levy (Amendment) Rules, 2020 notified vide Notification No. 87/2020 dated 28.10.2020. The original Equalisation Levy Rules 2016 was notified by CBDT vide Notification No. 38/2016 dated 27.05.2016. The amended Equalisation Levy Rules 2020 shall come into effect from 28.10.2020. Read the Equalisation Levy 2020 here.


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.


EQUALISATION LEVY RULES, 2016


1. Short title and commencement. - (1) These rules may be called the Equalisation levy  Rules, 2016. 

(2) They shall come into force on the 1st day of June, 2016. 


2. Definitions. - In these rules, unless the context otherwise requires,¬

(a) "Act" means the Finance Act, 2016 (28 of 2016);

(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;

(b) "Form" means Forms appended to these rules.


3. Rounding off of consideration for specified services, equalisation levy, etc. - The amount of consideration for specified services and the amount of Equalisation levy, interest and penalty payable, and the amount of refund due, under the provisions of Chapter VIII of the Act shall be rounded off to the nearest multiple of ten rupees and, for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten. 


4. Payment of Equalisation levy. - Every assessee, who is required to deduct and pay equalisation levy, shall pay the amount of such levy to the credit of the Central Government 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.


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. - (1) The statement of specified services required to be furnished under sub-section (1) 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 in the following manner, namely:- 

(i) electronically under digital signature; or 

(ii) electronically through electronic verification code. 


(2) The statement in Form No.1 in respect of all the specified services chargeable to equalisation levy during any financial year shall be furnished on or before the 30th June immediately following that financial year. 


(3) The Principal Director-General of Income-tax (Systems) shall, for the purpose of ensuring secure capture and transmission of data, lay down the specific procedures, formats and standards and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the statement under sub-rule (1). 


Explanation: For the purposes of this rule "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). 


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.


6. Time limit to be specified in the notice calling for statement of specified services or e-commerce supply or services. - Where an assessee fails Where an assessee or e-commerce operator, as the case may be, fails to furnish the statement within the time specified in sub-rule ( 2) of rule 5, the Assessing Officer may issue a notice to such person requiring him to furnish, within thirty days from the date of service of the notice, the statement in the Form prescribed in rule 5 and verified in the manner indicated therein. 


7. Notice of demand. - Where any levy, interest or penalty is payable in consequence of any order passed under the provisions of Chapter VIII of the Act, the Assessing Officer shall serve upon the assessee a notice of demand in Form No. 2 specifying the sum so payable: 


Provided that where any sum is determined to be payable by the assessee assessee or e-commerce operator under sub-section (1) of section 168 of the Act, the intimation under the said section shall be deemed to be a notice of demand. 


8. Form of appeal to Commissioner of Income-tax (Appeals). - (1) An appeal under sub-section (1) of section 174 of the Act to the Commissioner of Income-tax (Appeals) shall be made in Form No. 3 in the following manner, namely:- 

(i) electronically under digital signature; or 

(ii) electronically through electronic verification code. 


(2) The form of appeal referred to in sub-rule (1), shall be verified by the person who is authorised to verify the statement of specified services under rule 5, as applicable to the assessee. 


(2) The form of appeal referred to in sub-rule (1), shall be verified by the person who is authorised to verify the statement under rule 5, as applicable to the assessee or e-commerce operator, as the case may be.


(3) Any document accompanying Form No.3 shall be furnished in the manner in which the Form No.3 is furnished. 


(3) Any document accompanying Form No. 3 shall be furnished in the same manner in which the Form No. 3 is furnished.


(4) The Principal Director General of Income-tax (Systems) shall- 


i. lay down the procedure for electronic filing of Form No.3; 

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; and

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


(4) 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.3;

(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; and

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


9. Form of appeal to Appellate Tribunal.- An appeal under sub-section (1) or sub¬section (2) of section 175 of the Act to the Appellate Tribunal shall be made in Form No.4, and where the appeal is made by the assessee assessee or e-commerce operator, as the case may be, the form of appeal, the grounds of appeal and the form of verification appended thereto shall be signed by the person specified in Form No.4, as applicable to the assessee assessee or e-commerce operator, as the case may be.


APPENDIX


FORM NO. 1


[See rule 5 of Equalisation levy Rules, 2016]


Statement of Specified Services or E-Commerce Supply or Services



FORM NO. 2


[See rule 7 of Equalisation levy Rules, 2016]


Notice of Demand under Chapter VIII of the Finance Act, 2016


As per Equalisation Levy (Amendment) Rules, 2020, in Form No. 2,-

(i) at para 6, for the words and figure “rule 8, duly stamped and verified as laid down in that form”, the words and figures “rule 8 of the Equalisation levy Rules, 2016” shall be substituted;

(ii) at para 7, for the words and figure “rule 9, duly stamped and verified as laid down in that form”, the words and figures “rule 9 of the Equalisation levy Rules, 2016” shall be substituted.


FORM NO. 3

[See rule 8 of Equalisation levy Rules, 2016]


Appeal to the Commissioner of Income-tax (Appeals) Designation of the Commissioner (Appeals)


*No…………..of ………………………



FORM NO. 4

[see rule 9 of Equalisation levy Rules, 2016]


Form of Appeal to the Appellate Tribunal



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