In force · As amended up to 2026-08
206C. Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. —[2] [(1) 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) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:
3[TABLE
|3[TABLE|3[TABLE|||
|---|---|---|---|
|Sl. No.<br>Nature of goods|||Percentage|
|||||
|(1)|(2)||(3)|
|(i)|Alcoholic Liquor for human consumption||One per cent|
|(ii)|Tendu leaves||Five per cent|
|(iii)|Timber obtained under a forest lease||Two and one-half per cent|
|(iv)|Timber obtained by any mode other than under a forest||Two and one-half per cent|
||lease|||
|(v)|Any other forest produce not being timber or tendu leaves||Two and one-half per cent|
|(vi)|Scrap||One per cent]|
|4[(vii)|Minerals, being coal or lignite or iron ore||One per cent:]|
5[Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or 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) of the Table as it stood immediately before the 1st day of June, 2003, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax in accordance with the provisions of this section as they stood immediately before the 1st day of June, 2003.]]
6[(1A) Notwithstanding anything contained in sub-section (1), no collection of tax shall be made in the case of a buyer, who is resident in India, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the goods referred to in column (2) of the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things[4] [or for the purposes of generation of power] and not for trading purposes.
1. Ins. by 26 of 1988, s. 40 (w.e.f. 1-6-1988).
2. Subs. by Act 18 of 1992, s. 79, for sub-section (1) (w.e.f. 1-4-1992). Earlier sub-section (1) amended by Act 3 of 1989, s.
34 (w.r.e.f. 1-6-1988).
3. Subs. by Act 54 of 2003, s. 9, for the Table (w.e.f. 8-9-2003). Earlier substitution by 18 of 1992, s. 75 (w.e.f. 1-4-1992), as so amended by Act 32 of 2003, s. 86 (w.e.f. 1-6-2003).
4. Ins. by Act 23 of 2012, s. 81 (w.e.f. 1-7-2012).
5. Subs. by Act 54 of 2003, s. 9, for the proviso (w.e.f. 8-9-2003).
6. Ins. by s. 9, ibid. (w.e.f. 8-9-2003).
(1B) The person responsible for collecting tax under this section shall deliver or cause to be delivered to the[1] [Principal Chief Commissioner or Chief Commissioner] or[2] [Principal Commissioner or Commissioner] one copy of the declaration referred to in sub-section (1A) on or before the seventh day of the month next following the month in which the declaration is furnished to him.]
3[(1C) Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee") for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of thelicensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:
TABLE
||||TABLE||
|---|---|---|---|---|
|Sl.|No.|Nature of contract or licence|or lease, etc.|Percentage|
||||||
||(1)||(2)|(3)|
|(i)||Parking lot||Two per cent.|
|(ii)||Toll plaza||Two per cent.|
|(iii)||Mining and quarrying||Two per cent.]|
4[ Explanation 1. —For the purposes of this sub-section, "mining and quarrying" shall not include mining and quarrying of mineral oil.
Explanation 2. —For the purposes of Explanation 1 , "mineral oil" includes petroleum and natural gas.] 5* * * * *
(1F)Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax . ]
(2) The power to recover tax by collection under sub-section (1)[3] [or sub-section (1C)][6] *shall be without prejudice to any other mode of recovery.
(3) Any person collecting any amount under sub-section (1)[3] [or sub-section (1C)[6] *shall pay within[7] [the prescribed time] the amount so collected to the credit of the Central Government or as the Board directs:
8[Provided that the person collecting tax on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this section shall, after paying the tax collected to the credit of the Central Government within the prescribed time,[9] [prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority, or the person authorised by such authority, such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.]
1. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013).
2. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013).
3. Ins. by Act 23 of 2004, s. 50 (w.e.f. 1-10-2004).
Source: India Code