Section 165A Equalisation levy on e-commerce supply of services.
AMENDMENTS TO THE FINANCE ACT, 2016 by Finance act 2020 from 01.04.2020
(ii) in section 164,—
(A) after clause (c), the following clause shall be inserted, namely:—
‘(ca) “e-commerce operator” means a non-resident who owns, operates or manages digital or electronic facility or platform for online sale of goods or online provision of services or both;
(cb) “e-commerce supply or services” means—
(i) online sale of goods owned by the e-commerce operator; or
(ii) online provision of services provided by the e-commerce operator; or
(iii) online sale of goods or provision of services or both, facilitated by the e-commerce operator; or (iv) any combination of activities listed in clause (i), (ii) or clause (iii);’;
(B) in clause (d), after the words “specified service”, the words “or e-commerce supply or services” shall be inserted;
(iv) after section 165, the following section shall be inserted, namely:—
Charge of equalisation levy on e-commerce supply of services.
(1) On and from the 1st day of Apirl, 2020, there shall be charged an equalisation levy at the rate of two per cent. 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—
(i) to a person resident in India; or
(ii) to a non-resident in the specified circumstances as referred to in sub-section (3); or
(iii) to a person who buys such goods or services or both using internet protocol address located in India.
(2) The equalisation levy under sub-section (1) shall not be charged—
(i) where the e-commerce operator making or providing or facilitating e-commerce supply or services has a permanent establishment in India and such e-commerce supply or services is effectively connected with such permanent establishment;
(ii) where the equalisation levy is leviable under Section 165A; or
(iii) sales, turnover or gross receipts, as the case may be, of the e-commerce operator from the e-commerce supply or services made or provided or facilitated as referred to in sub-section (1) is less than two crore rupees during the previous year.
(3) For the purposes of this section, “specified circumstances” mean—
(i) sale of advertisement, which targets a customer, who is resident in India or a customer who accesses the advertisement though internet protocol address located in India; and
(ii) sale of data, collected from a person who is resident in India or from a person who uses internet protocol address located in India.’;