Collection of Tax (TCS) at Lawer Rate [Section 206C(9), (10), (11) and Rule 37G and 37H]

Where the Assessing Officer is satisfied that the total income of the buyer or licencee or lessee justifies the collection of the tax at any lower rate than the relevant rate specified in section 206C(1) or (1C) the Assessing Officer shall, on an application made by the buyer or licensee or lessee in Form No. 13, give to him a certificate as may be appropriate for collection of tax at such lower rate than the relevant rate specified in section 206C(1) or (1C).

Further, as per section 206C(10), where such certificate is given, the person responsible for collecting the tax shall, until such certificate is cancelled by the Assessing Officer, collect the tax at the rates specified in such certificate.

The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of such certificate and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.

Certificate for collection of tax at lower rates from buyer under section 206C(9) [Rule 37H]:

1. Where the Assessing Officer is satisfied that the total income of the buyer or licensee or lessee justifies the collection of tax at any lower rate than the relevant rate specified in section 206C(1) or (1C), he shall, on an application made by the buyer, licensee or lessee under rule 37G, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in section 206C(1) of that section.

2. The certificate given under rule 37H(1) shall be valid for the assessment year specified in that certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.

3. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate given under rule 37H(1).

4. The certificate shall be valid only for the person named therein.

5. The certificate shall be issued direct to the person responsible for collecting the tax under advice to the buyer who made an application for issue of such certificate.