9911796707
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 1993-94--Instructions regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ion 206C of the Income-tax Act, 1961, in respect of profits and gains from the business of trading in alcoholic liquor, forest produce, etc., during the financial year 1992-93. 2. The Finance Act, 1993, 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 1993-94. 3. 1. Sub-section (1) of 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 receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of 12 per cent. in respect of other buyers. 5. It may be noted 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 point of the first sale of such goods. 6. It is also clarified that where the Assessing Officer, on an application made by the buyer, gives a certificate in the prescribed form that to the best of his belief, any of the goods referred to in the Table in paragraph 3.1 are to be utilised for the purpose of manufacturing, processing or producing articles or things and not for trading purposes, the provisions of sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. (c) If any person responsible for collecting tax fails to collect the tax, he shall himself 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 the tax or, after collecting the tax, fails to pay it to the credit of the Central Government, he shall be liable in terms of sub-section (7) of section 206C to pay simple interest at 2 per cent. per month or part thereof, on the amount of such tax from the date on which such tax was collectible to the date on which such tax is actually paid. Further, section 276BB lays down that if a person fails to pay to the credit of the Central Go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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