EQUALISATION LEVY – CHAPTER VIII IN THE FINANCE ACT, 2016 (PART-2)
Introduction : Government vide finance act, 2016 inserted equalisation levy, it is necessary to know that when assessee is required to deduct, what will be the rate of deduction, and what are the other provisions relating to equalisation levy. Further there is also amendment which has been inserted last year, effect of which has resulted in widening the scope of equalisation levy.
Which are the statements/returns that are required to be filed by person collecting e-commerce levy?
Every assessee who was required to collect equalisation levy (Including e-commerce operator after amendment; are required to furnish FORM-01 and due date for such form will be 30th June immediately of that financial year.
What is the time limit within in which above statement can be furnished, if not furnished within time limit given above?
If due to any reason assessee has failed to furnish above statement within above given time limit than in said case, he may furnish such statement before the expiry of two years from the end of the financial year in which the specified service was provided, or e-commerce supply or services was made or provided or facilitated.
Whether the statement furnished above can be revised?
It is important to note, that assessee will be eligible to revise the above furnished statement, if it has been furnished within the time limit prescribed above (30th June). If assessee wants to revise such statement than he will be required to revise before the expiry of two years from the end of the financial year in which the specified service was provided, or e-commerce supply or services was made or provided or facilitated.
What is the time limit within which processing such statement is required to be completed by department?
Department will be required to process such statement in terms of arithmetical error, interest calculation, determination of refund and issuance of it; within one year from the end of the financial year in which the statement or revised statement is furnished. It is very clear that every revised statement will give one more year to department for processing of the same. Further one year starts from end of financial year in which such statement is revised or furnished.
What if e-commerce operator has failed to deposit an amount in timely manner?
Assessee will be liable to pay Interest at the rate of 1% per month or part of month in case he has not paid such collected amount or short paid to the account of central government. In case of short payment interest will be levied only on proportionate amount which is short paid. Along with interest, person is required to collect equalisation levy (Not being e-commerce operator)will be require to pay penalty of` 1,000 for every day during which the failure continues; (Maximum up to the amount of equalisation levy).
What if person failed to collect equalisation levy?
In case if person failed to collect the equalisation levy than in such case, he will be liable for following:
- Amount of equalisation levy will be required to be deposited from his own pocket.
- Interest at the rate of 1% per month or part of month on amount of short-payment.
- Penalty equal to the amount of equalisation levy.
- Penalty of Rs. 1,000/- per day after the expiry of 7th day of succeeding month in which equalisation levy was required to be deducted.(Not to be levied on e-commerce operator)
- Disallowance of such expenditure in the hands of the payer (unless the defect is rectified).
- Penalty of Rs. 100/- per day for which failure continuous (Failure to furnish statement within 30th June).
Whether opportunity of being heard is given to assessee on whom penalty is to be levied?
It has been stated that no order will be passed, imposing penalty on assessee unless he has been provided with opportunity of being heard. Therefore, department will be required to provide assessee with opportunity of being heard.
What are the remedies available with assessee against order of penalty?
If assessee is aggrieved by an order imposing penalty, then he may file appeal to the Commissioner of Income-tax (Appeals) within a period of 30 days from the date of receipt of the order of the Assessing Officer. He will be required to furnish Form-3 and will be required to pay a non-refundable fee of Rs. 1,000/-.
What if assessee is aggrieved by the order of Commissioner of Income-tax?
In case if assessee is aggrieved by the order, then he may file appeal to appellate tribunal within 60 days from the date on which the order sought to be appealed against is received by the assessee. Further in such case assessee is required to furnish Form 4 and non-refundable Rs 1,000/- as fees.
Thus, from above both the parts we are very clear with the provision of equalisation levy including amendments made in last year.