TMI BlogCollection of income-tax at source under section 206C of the Income-tax Act, 1961, in respect of profits and gains from the business of trading in alcoholic liquor, forest produce, etc.--Financial year 1992-93X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of profits and gains from the business of trading in alcoholic liquor, forest produce, etc., during the financial year 1991-92. 2. The Finance Act, 1992, does not make any change in the rates of tax applicable for the collection of tax at source under section 206C for the financial year 1992-93. However, section 44AC, which was hitherto inter-linked with section 206C, has been deleted by the Finance Act, 1992. Simultaneously, certain amendments consequential to the deletion of section 44AC, have been made in section 206C. 3.1 Sub-section (1) of the amended section 206C enjoins that every person, being a seller shall, at the time of debiting of the amount payable by the buyer, to the account of the buyer or at the time of rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act;" 3.3 The term "seller" means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society. 4. The amount of tax collectible at source at the rates referred to in paragraph 3.1 shall be increased by a surcharge at the rate of 15% where the buyer is a domestic company and at the rate of 12% in respect of other buyers. 5. It is clarified that the provisions of sub-section (1) of section 206C in relation to a buyer will not apply to a public sector company and to any other buyer who obtains the said goods at a second or subsequent sale of such goods. Thus, these provisions will apply only at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year for which such income is assessable. Reference in this regard may be made to rule 37D of the Income-tax Rules, 1962, and Form No. 27D prescribed thereunder. If a person fails to issue the certificate of tax collected at source by him, he shall be liable to pay by way of penalty, under section 272A, a sum which shall not be less than Rs.100 but which may extend to Rs.200 for every day during which the failure continues. (c) If any person responsible for collecting tax fails to collect the tax, he shall still be liable to pay in terms of sub-section (6) of section 206C, the tax to the credit of the Central Government within the period of seven days referred to in sub-para (a) above. (d) If the seller fails to collect th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 272A, a sum which shall not be less than Rs.100, but which may extend to Rs.200 for each day during which the default continues. However, the penalty shall not exceed the amount of tax which was collectible at source. 8. These instructions are not exhaustive and are issued only with a view to helping the persons responsible for collecting tax at source under section 206C. Wherever there is any doubt, a reference may be made to the relevant provisions of the Income-tax Act, 1961, and the Finance Act, 1992. In case any assistance is required, the Assessing Officer concerned or local Public Relations Officer of the Income-tax Department may be approached. 9. The contents of this Circular may please be brought to the notice of all concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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