Notification No.38/2016 [F.No.370142/12/2016-TPL] SO 1905(E)

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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II,
SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
; (CENTRAL BOARD OF DIRECT TAXES)
New Delhi, 27 May, 2016
NOTIFICATION
EQUALISATION LEVY RULES, 2016
S.O. 1905(E) - In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 179 of the Finance Act, 2016 (28 of 2016), the Central Government hereby makes the following rules for carrying out the provisions of Chapter VIII of the said Act relating to
Equalisation levy, namely:-
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); (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.
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).
6. Time limit to be specified in the notice calling for statement of specified services. -
Where an assessee 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.
ts 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 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.
(3) Any document accompanying Form No.3 shall be furnished in the 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.

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, 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.

APPENDIX
FORM NO.1 |
[See rule 4 of Equalisation levy Rules, 2016 ]
STATEMENT OF SPECIFIED SERVICES
EL -1
a
Please follow instructions.
‘ ACKNOWLEDGEMENT
Use block letters only.
PART-A For Office use only
1. NAME OF THE ASSESSEE Receipt No. Date
2. ADDRESS OF THE ASSESSEE
Receiving Official
3. PERMANENT ACCOUNT NUMBER (PAN) Seeseseres
4, FINANCIAL YEAR
(SPECIFIED SERVICES RELATING TO WHICH ARE REPORTED)- [J] ][|]-[]]
5. WARD/ CIRCLE/ RANGE Ee eS eee ee (IN RS.)
6. TOTAL AMOUNT OF CONSIDERATION FOR
SPECIFIED SERVICES PAID/CREDITED
7. EQUALISATION LEVY DEDUCTIBLE ON ITEM 6
8. TOTAL EQUALISATION LEVY DEDUCTED SLERSS2eekeaecace
9. TOTAL EQUALISATION LEVY PAID BELesSveseernres
10. EQUALISATION LEVY PAYABLE/ ESR ESSSR eres Ss
REFUNDABLE (7-9)
11. INTEREST PAYABLE UNDER SECTION 167 BIAkeeeoRacaens
12. INTEREST PAID LATTER TE La te

PART-B
DETAILS OF EQUALISATION LEVY DEDUCTED AND PAID TO THE CREDIT OF THE CENTRAL
GOVERNMENT
Sl. | Name of | Address PAN if Amount of Date of Equalisation Interest | Penalty | BSR | Challan Date on
No. | the non- of the available | consideration | payment/cred levy Code | SI. No. which resident non- of non- for specified it of amount amount providing | resident | resident services of deposited specified | referred | referred paid/ consideration service to in to credited for specified column | column 2 services
2
1 2 (3) 4 (5) 6 7) 8 9 10 11 12
ENE) Sata BP RRTE COSTA SRO Tana MEINERS SOE MAI GGT SRO Mey eER SC see
VERIFICATION
ip (full name in block letters), son*/ daughter of having permanent account number solemnly declare that to the best of my knowledge and belief the information given in this statement is correct and complete and in accordance with provisions of Chapter VIII of the Finance Act, 2016 and Equalisation Levy
Rules, 2016.
I further declare that I am making this statement in my capacity as and I am competent to make this statement and verify it.
Date
Place (Name and Signature)
Notes:

1. *Delete whichever is not applicable.

2. Assessee means a resident and carrying on business or profession or a non-resident having a permanent establishment in India, who is required to deduct the equalisation levy from the amount paid or payable to a non-
resident in respect of specified service (section 166 of the Chapter VIII of the Finance Act,2016).

3. This Form is to be furnished and verified by-

(i) In case of an Individual or HUF, the person authorised to verify the return of income under section 140
of the Income-tax Act, 1961;

(ii) In case of company, Managing Director or Director or Principal Officer;

(iii) In any other case; Principal Officer.

FORM NO. 2
[See rule 7 of Equalisation levy Rules, 2016]
Notice of demand under Chapter VIII of the Finance Act, 2016
EL —2
To
Bpnielitewkieaver paweetes SME Gata a This is to give you notice that for the financial year ............... a Sum Of RS. ..........ccccee0e5 details of which are given on the reverse, has been determined to be payable by you.
2 The amount should be paid to the Manager, authorised Bank or State Bank of India or Reserve Bank of India at ...................... within thirty days of the service of this notice. The previous approval of the
Additional/ Joint Commissioner of Income-tax has been obtained for allowing a period of less than 30 days for the payment of the above sum. A challan is enclosed for the purpose of payment.
5. If you do not pay the amount within the period specified above, you shall be liable to pay simple interest at one per cent for every month or part of a month from the date commencing after the end of the period aforesaid in accordance with section 220(2) of the Income-tax Act, 1961 read with section 178 of the
Finance Act, 2016.
4. If you do not pay the amount of the tax within the period specified above, penalty (which may be as much as the amount of levy in arrear) may be imposed upon you after giving you a reasonable opportunity of being heard in accordance with section 221 of the Income-tax Act, 1961 read with section 178 of the Finance
Act, 2016.
5 If you do not pay the amount within the period specified above, proceedings for the recovery thereof will be taken in accordance with sections 222, 227, 229 and 232 of the Income-tax Act, 1961 read with section
178 of the Finance Act, 2016.
6. If you intend to appeal against the penalty, you may present an appeal under section 174 of the
Finance Act, 2016, to the Commissioner of Income-tax (Appeals) within thirty days of the receipt of this notice, in Form No. 3 as prescribed in rule 8, duly stamped and verified as laid down in that form.
ee The amount has become due as a result of the order of the Commissioner of Income-tax (Appeals)
under section 174 of the Finance Act, 2016. If you intend to appeal against the aforesaid order, you may present an appeal under section 175 of the said Act to the Income-tax Appellate Tribunal ......within sixty days of the receipt of that order, in Form No. 4, as prescribed in rule 9 , duly stamped and verified as laid down in that form.
PUG Seis cctccc seat Tua aera ees
Date sic ccises es: Assessing Officer
Smnceeniies ——
Notes:
1. Delete inappropriate paragraphs and words.
2. __ If you wish to pay the amount by cheque, the cheque shall be drawn in favour of the Manager, authorised Bank or
State Bank of India or Reserve Bank of India.
ne If you intend to seek extension of time for payment of the amount or propose to make the payment by installments, the application for such extension or as the case may be, permission to pay by installments, shall be made to the
Assessing Officer before the expiry of the period specified in paragraph 2. Any request received after the expiry of the said period will not be entertained in view of the specific provisions of section 220(3) of the Income-tax Act,
1961.

FORM NO. 3
[See rule of 8 Equalisation levy Rules, 2016]
Appeal to the Commissioner of Income-tax (Appeals)
Designation of the Commissioner (Appeals)
EL —3
i NS «Lene eee ieee mieemdicnet
22. 0. | I eee Sapam nares rasa gers saan ne Financial year in connection with which the appeal is ee ee
[4. | Assessing Officer passing the order appealed against. | _____——~—SS
Details of order appealed ao. bee ee (a) | Section and sub-section of Chapter VIII of the Finance
Act, 2016, under which the order appealed against was passed ee

he i

a connection with which the appeal is preferred
6.1 | reply to 6 is yes, date of filing ofstatement S| SS
ee been paid eee teaede LC
: So payment
CRY REERES, SLI TNE AE eaeeaa seers
7. | **Whether an appeal in relation to any other financial year is geese]
Appeals)
-7.1| __| Ifreply to 7 is yes, then give following details:- |__| YesNo (a) | Commissioner (Appeals), with whom the appeal is

ee ee

ol Spee Ne mildsteotiingofappe, |

b> sina ODIO Ree

been preferred;

| (4) | Assessing Officer passing the order appealed against, | —~=~=~S*~*~<C~*~*~*~S~S

O————

Act, 2016, under which the Assessing Officer passed the order appealed against;

Form of Verification
I, .sssesseeceeesseesseeeeesceeessy the appellant, do hereby declare that what is stated above is true to the best of my information and belief.
MN NE oss ocsas cp cians MINOR Sooccs ois
PINGS assici tessa;
EMI cs avs iiacass
Signature
Notes:
ii The form of appeal shall be verified by a person who is authorised to verify the statement of specified services in
Form No. 1.
Zi *These particulars will be filled in the office of the Commissioner (Appeals).
3. **If appeals are pending in relation to more than one financial year, separate particulars in respect of each financial year may be given.
4. The memorandum of appeal shall be accompanied by a fee of one thousand rupees.
5. The fee should be credited in a branch of the authorised Bank or a branch of the State Bank of India or a branch of the Reserve Bank of India after obtaining a challan from the Assessing Officer.

FORM NO. 4
[See rule 9 of Equalisation levy Rules, 2016]
Form of appeal to the Appellate Tribunal EL—4

In the Income-tax Appellate Tribunal Sere dnes Ciruitois tsa etanipacenoai eran puage ede Gey ec date ERG ves eae UO TCIa Dey ER,

Sa ce nny TEE TTT: ME Sen Peete Tee ee

APPELLANT Versus RESPONDENT

ae netnoewmte
2 Section of Chapter VIII of the Finance Act, 2016 under pee ee ee

against
4. Financial year in connection with which the appeal is ee ae
Total amount of consideration for specified services i.

paid/credited by the assessee for the financial year referred

to in item 4

Total amount of penalty levied by the Assessing Officer eee |

-7._| The Assessing Officer passing the original order +f: | ______]

Section of Chapter VIII of the Finance Act, 2016 under eee |

| 9.__| Date of communication of the order appealed against___[:|

| 10._| Address to which notices may be sent to the appellant |: | __________]

-11._| Address to which notices may be sent to the respondent__|: | ~~

GROUNDS OF APPEAL
lie 4; aE 4.etc.
Signed Signed (Authorised representative, if any) (Appellant)
Verification

L, vitsascasssesceeeseeany, the appellant, do hereby declare that what is stated above is true to the best of my

information and belief.

MT GN OND ois sn i siatevicnin UBY OF ise ocvececsasncasnvdgnnen

PUNE etek ee ieee

Signed

Notes:

1. The memorandum of appeal shall be in triplicate accompanied by two copies (at least one of which should be a certified copy) of the order appealed against, two copies of the relevant order of the Assessing Officer, two copies of the grounds of appeal before the first appellate authority, two copies of the statement of facts, if any, filed before the said appellate authority.

2. The memorandum of appeal by an assessee under sub-section (1) of section 175 of Chapter VIII of Finance Act, 2016 shall be accompanied by a fee of one thousand rupees.

3. The fee shall be credited in a branch of the authorised Bank or a branch of the State Bank of India or a branch of the Reserve
Bank of India after obtaining a challan and the triplicate challan shall be sent to the Appellate Tribunal with a memorandum of appeal. The Appellate Tribunal shall not accept cheques, drafts, hundies or other negotiable instruments.

4. The memorandum of appeal shall be written in English or, if the appeal is filed in a Bench located in any such State as is for the time being notified by the President of the Appellate Tribunal for the purposes of rule 5A of the Income -tax (Appellate
Tribunal) Rules, 1963, then, at the option of the appellant, in Hindi, and shall set forth, concisely and under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively.

5. *The number and year of appeal will be filled in the office of the Appellate Tribunal.

6. Delete the inapplicable columns.

7. Ifthe space provided is found insufficient, separate enclosures may be used for the purpose.

* NOTES
i. Please note that quoting false PAN may attract a penalty of Rs. 10,000/- as per section 272BB of Income-tax
Act, 1961.
2, Tax payers may please draw/issue Cheque/DDs towards payment of income-tax as under:
Pay (Name of the Bank where the Challan is being deposited)
A/c Income-tax
3 Deductor means a resident and carrying on business or profession or a non-resident having a permanent establishment in India, who is required to deduct the equalisation levy from the amount paid or payable to a non-
resident in respect of specified service (section 166 of the Chapter VIII of the Finance Act,2016).
KINDLY ENSURE THAT THE BANK’S ACKNOWLEDGEMENT CONTAINS THE FOLLOWING:-
, 7 DIGIT BSR CODE OF THE BANK BRANCH
- DATE OF DEPOSIT OF CHALLAN (DD MM ¥Y¥)
3. CHALLAN SERIAL NUMBER
THESE WILL HAVE TO BE QUOTED IN YOUR STATEMENT OF SPECIFIED SERVICES.
33
[Notification No, /' 2016: F. No. 370142/ 12/2016-TPL]
(LAKSHMI NARAYANAN)
UNDER SECRETRAY (TAX POLICY AND LEGISLATION)

Source: the department’s scanned file.

What this is

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The text, read by machine from the scan