Penalty under Equalisation Levy [ Section 171 to 173, Finance Act 2016 ] - International Taxation - Income Tax

Penalty under Equalisation Levy Penalty for failure to deduct or pay equalization pay Section 171 , Finance Act 2016. Nature of default Penalty Failure to deduct whole or part of equalisation levy u/s 166 In addition to payment of equalisation levy u/s 166(3) and interest u/s 170 , penalty equal to the amount of equalisation levy that he failed to deduct would be leviable Failure to pay whole or part of Equalisation levy as required u/s 166A In addition to equalisation levy u/s 166A and interest u/s 170, penalty equal to the amount of equalisation levy that he failed to pay is leviable. Failure to remit equalisation levy to the Central Government on or before 7th of the following month , after deduction of the same u/s 165(1) In addition to paying the equalisation levy on specified services u/s 166(2) and interest u/s 170, a penalty of 1,000 for every day during which the failure continues is leviable. However, such penalty shall not exceed the amount of equalisation levy that he failed to pay. Penalty for failure to furnish statement Section 172 , FA 2016. If assessee or e-commerce operator fails to file return upto 30 th June or within 30 days from the date of service of Notice by AO then penalty of ₹ 100 per day during the period failure continues. Penalty not be imposed in certain circumstances - Section 173 , FA 2016. - No penalty for failure under section 171 or section 172, if the assessee or e-commerce operator proves to the satisfaction of the Assessing Officer that there was reasonable cause for the said failure. Further, No order imposing a penalty under this Chapter shall be made unless the assessee or e-commerce operator has been given a reasonable opportunity of being heard.