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TCS in case of Parking Lot, Toll Plaza or Mining and Quarrying [Section 206C(1C)]

Every person, who grants a Lease or a Licence or enters into a contract or otherwise transfers any right or interest in any parking lot or toll plaza or mine or quarry, to another person (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 the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in case 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:

 

Public sector company - If the licensee or lessee is a public sector company tax is not collectible.

SL. No. Nature of Contract or Licence or Lease, etc. Percentage
(1) (2) (3)
i Parking Lot 2%
ii Toll Plaza 2%
iii Mining and Quarrying 2%
TCS in case of Parking Lot, Toll Plaza or Mining and Quarrying [Section 206C(1C)]

Higher Rate of TCS if PAN is not furnished by Collectee [Section 206CC]

(1) Higher rate of TCS if the collectee does not furnish PAN [Section 206CC(1)]:

Notwithstanding anything contained in any other provisions of this Act, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates, namely:—

  1. at twice the rate specified in the relevant provision of this Act; or

  2. at the rate of 5%

(2) Declaration in Form No. 27C not valid if PAN is not provided [Section 206CC(2)]:

No declaration under section 206C(1A) in Form No. 27C shall be valid unless the person furnishes his Permanent Account Number in such declaration.

(3) Consequences if the declaration furnished is invalid [Section 206CC(3)]:

In case any declaration becomes invalid under section 206CC(2), the collector shall collect the tax at source in accordance with the provisions of section 206CC(1).

 

(4) Application for obtaining certificate for lower deduction of TCS [Section 206CC(4)]:

No certificate under section 206C(9) shall be granted unless the application in Form No. 13 made under that section contains the Permanent Account Number of the applicant.

(5) Colletor and collectee to indicate PAN in all correspondence, bills, etc. [Section 206CC(5)]:

The collectee shall furnish his Permanent Account Number to the collector and both shall indicate the same in all the correspondence, bills, vouchers and other documents which are sent to each other.

(6) Invalid or wrong PAN will attract TCS as per section 206CC(1) [Section 206CC(6)]:

Where the Permanent Account Number provided to the collector is invalid or does not belong to the collectee, it shall be deemed that the collectee has not furnished his Permanent Account Number to the collector and the provisions of sub-section (1) shall apply accordingly.

(7) Provisions not applicable in case of non-resident have been no PE in India [Section 206CC(7)]:

The provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.

CONTENT- Tax Collection at Source (TCS) [Section 206C]

Related Topics .... Tax Collected at Source (TCS)

 
 
 
 
 
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