Income Tax Act, 2025
Section 6: Subs. by Act 28 of 2016, s. 87, for sub-section (7) (w.e.f. 12016).
6. Subs. by Act 28 of 2016, s. 87, for sub-section (7) (w.e.f. 12016).
667
1[BB.—Collection at source
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
Sl. No. 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.
(w.e.f. 12016).
667
1[BB.—Collection at source
206C. Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap,
etc.—2[
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
of the Table below, a sum equal to the percentage, specified in the
corresponding entry in column
of the said Table, of such amount as income-tax:
3[TABLE
Sl. No. Nature of goods Percentage
(2)
(i) Alcoholic Liquor for human consumption One per cent
Tendu leaves Five per cent
Timber obtained under a forest lease Two and one-half per cent
Timber obtained by any mode other than under a forest Two and one-half per cent
lease
Any other forest produce not being timber or tendu leaves Two and one-half per cent
Scrap One per cent]
4[
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
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
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
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[
Notwithstanding anything contained in sub-section
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.