CENTRALIZED PROCESSING OF EQUALIZATION LEVY STATEMENT SCHEME, 2023

[Mr. M. GOVINDARAJAN]

Equalization Levy Statement

Section 167 of the Finance Act, 2016 provides that every assessee or e-commerce operator shall, on or before the 30th day of June immediately following that financial year, in Form – 1, prepare and deliver or cause to be delivered to the Assessing Officer or to any other authority or agency authorized by the Board in this behalf, a statement in such form, verified in such manner and setting forth such particulars as may be prescribed, in respect of all specified services or e-commerce supply or services, as the case may be, during such financial year. Such statement, if not filed within the prescribed time or revised statement may be filed before the expiry of two years from the end of the financial year in which the specified services or e-commerce supply or services was made or provided or facilitated.

If the statement is not furnished in time the Assessing Officer may serve a notice upon such assessee or e-commerce operator requiring him to furnish the statement in the prescribed form, verified in the prescribed manner and setting forth such particulars, within such time, as may be prescribed.

Scheme

Section 168 of the Finance Act, 2016 provides the procedure for processing the equalization levy statement. Section 168(2) of the Finance Act, 2016 gives powers to the Board to make a scheme for centralized processing of such statements to expeditiously determine the tax payable by, or the refund due to, the assessee or ecommerce operator as required under that sub-section. Accordingly the Board made a scheme called as ‘The Centralized Processing of Equalization Levy Statement Scheme, 2023’ vide Notification No. S.O. 614(E), 07.02.2023. This Scheme shall be applicable in respect of processing of the Equalization Levy Statements. This scheme will come into effect from 07.02.2023.

Furnishing of Statement

Every assessee or e-commerce operator shall furnish the Equalization Levy Statement within the time stipulated under sub-rule (2) of rule 5 of the rules. They may furnish an Equalization Levy Statement or a revised Equalization Levy Statement, as the case may be, at any time before the expiry of 2 years from the end of the financial year in which the specified services was provided or e-commerce supply or services was made or provided or facilitated. They may furnish a Equalization Levy Statement in response to notice sent by the Assessing Officer.

Invalid statement

The Commissioner may declare an Equalization Levy Statement, invalid for non-compliance of procedure for using any software not validated and approved by the Director General; or on account of incomplete information in the Equalization Levy Statement.

Processing of Statement

The Centralized Processing Centre shall process a valid Equalization Levy Statement in the following manner-

(a) the equalization levy shall be computed after making the adjustment for any arithmetical error in the Equalization Levy Statement ;

(b) the interest, if any shall be computed on the basis of sum deductible or payable, as the case may be, as computed in the Equalization Levy Statement;

(c) the sum payable by, or the amount of refund due to, the assessee or e-commerce operator shall be determined after adjustment of the amount computed under clause (b) against any amount paid under section 166(2) or section 166A or section 170 of the Act and any amount paid otherwise by way of tax or interest;

(d) no intimation shall be prepared or generated and sent, after the expiry of one year from the end of the financial year in which the Equalization Levy Statement or revised Equalization Levy Statement is furnished, to the assessee or e-commerce operator specifying the sum determined to be payable by, or the amount of refund due to, him under clause (c); and

(e) the amount of refund due to the assessee or e-commerce operator in pursuance of the determination under clause (c) shall be granted to him.

In case a revised Equalization Levy Statement is furnished, the Centre shall process only the revised Equalization Levy Statement and no further action shall be taken on the original Equalization Levy Statement if it has not already been processed.

The Commissioner may adopt appropriate procedure for processing of Equalization Levy Statements; or decide the order of priority for processing of Equalization Levy Statements based on administrative requirements.

Amendment

The assessee or e-commerce operator may make an application to the Assessing Officer for amending any intimation issued under section 168 of the Act, within 1 year from the end of the financial year in which the intimation sought to be amended was issued.

Transmission

If an Equalization Levy Statement cannot be processed in the Centre for any reasons, the Commissioner shall arrange to transmit such return to the Assessing Officer having jurisdiction in respect of the assessee or e-commerce operator for the purposes of Chapter VIII of the Act.

Rectification of error

In case of error in processing of the Equalization Levy Statement due to an error in data entry or a software error or otherwise, resulting in excess refund being computed or reduction in demand of tax, the same will be corrected on its own by the Centre by passing a rectification order and the excess amount shall be recovered as per the provisions of sections 220 to 227, 229 and 232 of the Income-tax Act, 1961.

Set off

In a case where there is any sum payable by the assessee or e-ecommerce operator under Chapter VIII of the Act, the refund, if any, arising from processing of the Equalization Levy Statement, shall be set of against such sum payable.

Personal appearance

No personal appearance is required before the Centre in connection with any proceedings. Written or electronic communication from such person or authorized representative in the format specified by the Centre in this respect shall be sufficient compliance of the query or clarification received from the Centre. The Centre may call for such clarification, evidence or document as may be required for the purpose of facilitating the processing of Equalization Levy Statements and all such clarification, evidence or document shall be furnished electronically.

Service of communication

Every intimation, notice or any other communication under this Scheme from the Centre to the assessee or ecommerce operator or its authorized representative shall be made by,–

• delivering or transmitting its copy thereof, electronically to the person sent by the Centre’s e-mail;
• placing its copy in the registered electronic account of the person on the designated portal ; or
• any other mode as per section 282 of the Income Tax Act, 1961-
  • by post or by such courier services as may be approved by the Board; or
  • in such manner as provided under the Code of Civil Procedure, 1908 (5 of 1908) for the purposes of service of summons; or
  • in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 (21 of 2000); or
  • by any other means of transmission of documents as provided by rules made by the Board in this behalf.

The intimation, orders and notices shall be computer generated and need not carry physical signature of the person signing it.

Power of Director General

The power is given to Director General to specify procedures and processes from time to time for effective implementation and functioning of this Scheme, in an automated and mechanized environment, including specifying the procedure and processes in respect of the following-

• processing of Equalization Levy Statement;
• validating any software used for e-filing the statement;
• call centers to answer queries and provide taxpayer services which may include outbound calls to assessee or e-commerce operators requesting for clarification to assist in the processing of their statements; and
• managing equalization levy administration functions such as receipt, scanning, data entry, processing, issue of refunds, storage and retrieval of statements and documents in a centralized manner.