Section 206C amendment

Section 206C amended by section 88 of Finance Act 2016 (with effect from the 1st day of June, 2016) : Relevant Portion inserted/amended in Bold :-

(1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery  or any other goods (other than bullion or jewellery) or providing any service shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,—

(i)           for bullion, exceeds two hundred thousand rupees; or

(ii)          for jewellery, exceeds five hundred thousand rupees;] or 

(iii)    for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees:

Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.

(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed.

(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. 

Explanation.—For the purposes of this section,

(aa)       “buyer” with respect to—

(ii)          sub-section (1D)  or sub-section (1F) means a person who obtains in any sale, goods of the nature specified in the said sub-section;

(c)          “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 family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which the goods of the nature specified in the Table in sub-section (1) or sub-section (1D) are sold or services referred to in sub-section (1D) are provided

Section 206 amended by section 88 of Finance Act 2016

Amendment of section 206C.

88. In section 206C of the Income-tax Act, with effect from the 1st day of June, 2016,—

(i)           in sub-section (1D),—

(A)          after the words “or jewellery”, the words “or any other goods (other than bullion or jewellery) or providing any service” shall be inserted;

(B)          in clause (ii), for the word “rupees.”, the words “rupees; or” shall be substituted;

(C)         after clause (ii), the following clause shall be inserted, namely:—

“(iii)        for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees:

               Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.”;

(ii)          after sub-section (1D), the following sub-sections shall be inserted, namely:—

               “(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed.

               (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.”;

(iii)         after sub-section (11), in the Explanation,—

(A)          in clause (aa), in sub-clause (ii), after the word, brackets, figure and letter “sub-section (1D)”, the words, brackets, figure and letter “or sub-section (1F)” shall be inserted;

(B)          in clause (c), after the word “sold”, the words, brackets, figure and letter “or services referred to in sub-section (1D) are provided” shall be inserted.

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