9911796707
TMI BlogAmendment of section 206C.X X X X Extracts X X X X X X X X Extracts X X X X ..... ebiting the amount payable by the buyer or at the time of receipt of such amount from the said buyer, by any mode, whichever is earlier, collect from the buyer, a sum equal to five per cent. of such amount as income-tax: Provided that the provisions of this sub-section shall not apply, if the buyer is, (i ) liable to deduct tax at source under any other provision of this Act and has deducted such amount; (ii ) the Central Government, a State Government, an embassy, a High Commission, a legation, a commission, a consulate, the trade representation of a foreign State, a local authority as defined in the Explanation to clause (20 ) of section 10 or any other person as the Central Government may, by notification in the Official Gazette, specify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision of this Act and has deducted such amount. Explanation . For the purposes of this sub-section, ( a ) buyer means a person who purchases any goods, but does not include, (A ) the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or (B ) a local authority as defined in the Explanation to clause (20 ) of section 10; or (C ) any other 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; ( b ) seller means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des 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 specified nature a sum equal to the specified percentage, of such amount as income-tax. Clause (c) of the Explanation to the said section provides that the 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 and also includes an individual or a Hindu undivided fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mode, whichever is earlier, collects from the buyer, a sum equal to five per cent. of such amount as income-tax. The provisions of the said sub-section shall not apply if the buyer is liable to deduct tax at source under any other provision of the Act and he has deducted such amount. It is further provided that the provisions of the said sub-section shall not apply if the buyer is the Central Government, or a State Government, or an embassy, or a High Commission, or a legation, a commission, a consulate, the trade representation of a foreign State, or a local authority as defined in the Explanation to clause (20) of section 10 or any other person notified by the Central Government for this purpose subject to conditions as may be specified i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment or as the Board directs. It is also proposed to amend the first proviso to subsection (6A) of the said section so as to provide that any person who is responsible for collecting tax in accordance with the provisions of sub-section (1) and sub-section (1C), fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee, shall not be deemed to be an assessee in default in respect of such tax, if such buyer or licensee or lessee has furnished his return of income under section 139 and has taken into account such amount for computing income in such return of income and the person has paid the tax due on the income decl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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