The Equalisation levy (Amendment) Rules, 2020.

The Central Board of Direct Taxes vide its notification dated 28th October 2020 has published the Equalisation levy (Amendment) Rules, 2020. The ‘Equalisation Levy’ has been introduced to provide for an equalisation levy of 6% to be deducted from amounts paid to a non-resident not having any permanent establishment in India, for specified services.

Through this amendment, a new definition for the term “electronic verification code” has been inserted which states that it is 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.

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.

Further Rule 5 which relates to “Statement of specified services or e-commerce supply or services” is substituted, it is stated that 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.