Definitions
161. In this Chapter, unless the context otherwise requires,-
(a) “Appellate Tribunal” means the Appellate Tribunal constituted under section 252 of the Incometax Act;
(b) “Assessing Officer” means the Income-tax Officer or Assistant Commissioner of Income-tax or Deputy Commissioner of Income-tax or Joint Commissioner of Income-tax or Additional Commissioner of Income-tax who is authorised by the Board to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Chapter;
(c) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
(d) “equalisation levy” means the tax leviable on consideration received or receivable for any specified service under the provisions of this Chapter;
(e) “Income-tax Act” means the Income-tax Act, 1961 (43 of 1961).
(f) “online” means a facility or service or right or benefit or access that is obtained through the internet or any other form of digital or telecommunication network;
(g) “permanent establishment” includes a fixed place of business through which the business of the enterprise is wholly or partly carried on;
(h) “prescribed” means prescribed by rules made under this Chapter;
(i) “specified service” means online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement and includes any other service as may be notified by the Central Government in this behalf;
(j) words and expressions used but not defined in this Chapter and defined in the Income-tax Act, or the rules made thereunder, shall have the meanings respectively assigned to them in that Act.
Notes on Clauses:
Clause 161 of the Bill seeks to define certain terms and expressions used in this Chapter.
Sub-clause (1) of clause 161of the Bill seeks to make a provision for the charging of equalisation levy at the rate of six per cent. of the amount of consideration for specified services received or receivable by a non-resident from a person resident in India and carrying on business or profession or from a non-resident having a permanent establishment in India.
Sub-clause (2) provides that no such levy shall be made, if the non-resident service provider has a permanent establishment in India and income from such specified services are effectively connected to this permanent establishment. It is further provided to exclude the consideration for specified services out of the scope of equalisation levy if such consideration is not for the purpose of carrying out business or profession. It is also provided that no such levy shall be made if the aggregate amount of consideration for specified services received or receivable by a non-resident from a person resident in India or from a non-resident having a permanent establishment in India does not exceed one lakh rupees in any previous year.
