TMI BlogSection 206C - TCS on Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etcX X X X Extracts X X X X X X X X Extracts X X X X ..... tage of the purchase price, as income-tax. S.No Nature of goods Percentage rate of tax collection at source of Purchase Price 1. Alcoholic liquor for human consumption 1% 2. Tendu Leaves 5% 3. Timber obtained under a forest lease 2.5% 4. Timber obtained by any mode other than under a forest lease 2.5% 5. Any other forest produce not being timber or tendu leaves 2.5% 6. Scrap 1% 7. Mineral being coal or Lignite or Iron Ore 1% No surcharge, education cess or or SHEC shall be added to the above rates. Hence tax will be collected at source at the basic rate. Meaning of scrap:- Scrap means waste or scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ) for the use of such parking lot or toll plaza or mine or quarry for the purposes of business shall, at the time of debiting of the amount payable by the licencee or lessee to the account of the licencee or lessee or at the time of receipt of such amount from the licencee or lessee, whichever is earlier, collect from the licencee or lessee 2% of such amount as Income-Tax. SECTION 206C(1D):- [Omitted by FA, 2017,w.e.f. 1-4-2017 ] SECTION 206C(1E):- [Omitted by FA, 2017,w.e.f. 1-4-2017 ] TCS on sale of motor vehicle exceeding the value of ₹ 10,00,000 Section 206C(1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ₹10,00,000, shall, at the time of receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-07-2023 ] However, that the authorised dealer shall collect a sum equal to 0.5% of the amount or aggregate of the amounts in excess of ₹ 7,00,000 remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education: Where no tax is to be collected at source: (a) The authorised dealer shall not collect the sum, if the amount or aggregate of the amounts being remitted by a buyer is less than ₹ 7,00,000 in a financial year and is for a purpose other than purchase of overseas tour programme package. and is for the purposes of education or medical treatment [Omitted by FA, 2023, w.e.f., 01-07-2023 ] (b) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 206C(1G) of the Act shall not apply to a person (being a buyer) who is a non-resident in terms of section 6 of the Act and who does not have a permanent establishment in India. [ Circular no. 99/2022 dated 17.08.2022 ] The Central Government hereby notifies that the provisions of section 206C(1G) shall not apply to an individual who is not a resident in India in terms of clause (1) and clause (1A) of section 6 of the Act, and who is visiting India. [ Circular no. 20/2022 dated 30.03.2022 ] Seller to collect TCS from consideration received from buyer Section 206C(1H) [ W.e.f. 01.10.2020 ] Person Responsible for collecting TCS Every person, being a seller, who receives any amount as consideration for sale of any goods of the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. Important Note it is clarified that the buyer and seller would still be liable to deduct/ collect tax as per the provisions of section 194Q and 206C (1H) of the Act, as the case may be. [ Circular No. 20/2021 dated 25.11.2021 ] Note: The buyer shall get credit of TCS collected by seller. No TCS has to be collected where: (i) Buyer is a public sector company (ii) Buyer is a Central Govt., State Govt. (iii) Buyer is a club (iv) Buyer is embassy, High commission, Consulate or trade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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