The Central Board of Direct Taxes (CBDT) notified the Equalisation levy (Amendment) Rules, 2020 to further amend the Equalisation levy Rules, 2016.
Equalisation Levy is a levy on specified services being levied on non-residents who do not otherwise pay income tax in the State in which services are being provided by virtue of digitalization of rendering services.
The amendment inserted the new word “electronic verification code” which 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.
In the Equalisation levy Rules, 2016, rule 4 was substituted with the Payment of Equalisation levy, wherein 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 authorized Bank accompanied by an equalization levy challan.
The amendment said that the statement is 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, electronically under digital signature; or electronically through electronic verification code.
For the purpose of ensuring secure capture and transmission of data, The Principal Director-General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be are directed to lay down the procedure for electronic filing of Form No.1; 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; be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished; and specify the manner of furnishing the revised statement required to be furnished under sub-section (2) of section 167 of the Act.
The amendment notified Form No. 1 in respect of the statement of Specified Services or E-Commerce Supply or Services wherein details of equalisation levy deducted and paid to the credit of Central Government and equalisation levy paid to the credit of Central Government.
The amendment further notified Form No. 2 in respect of the appeal to the Commissioner of Income-tax (Appeals) Designation of the Commissioner (Appeals).
The government notified Form No. 3 in respect of Form of Appeal to the Appellate Tribunal.
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