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TMI BlogSection 206C - TCS on Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc [ Section 206C(1) to (1F) ]X X X X Extracts X X X X X X X X Extracts X X X X ..... collect from the buyer, a sum equal to the following percentage 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or quarry to another person, other than a public sector company (herein after called as "Licencee or Lessee") 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) * From 01.01.2025 - Every person, being a seller, who recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Buyer is a Central Govt., State Govt. * (iii) Buyer is a club * (iv) Buyer is embassy, High commission, Consulate or trade representative of a foreign state. * (v) Buyer buys the above goods for his personal consumption. Important Notifications & Circulars * Various clarification has been issued regarding collection of income-tax at source under section 206C of the Income-tax Act, in respect of profits and gains from the business of trading in alcoholic liquor, forest produce, etc. * Clarification I [ Circular No. 525, dated 24-11-1988 ] * Clarification II [ Circular No. 535, dated 26-6-1989 ] * Clarification III [ Circular No. 565, dated 11-7-1990 ] * Clarification IV [ Circular No. 585, dated 27-11-1990 ] * Clarifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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