RULG_175 - Taxpublishers.in

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The Tax Publishers Rule 31AA and Rules 37C to 37J Collection of Tax at Source 1. Person being seller responsible for tax collection at source According to section 206C(1), every person being a seller of specified goods is required to collect tax from buyer at the prescribed rate, 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 buyer either in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. 2. When individual or HUF is liable to collect tax An individual or HUF is liable to collect tax at source : (i) if it is a seller of specified goods, carries on business or profession, whose total sales or turnover exceeds ₹1 crore in the financial year immediately preceding the financial year in which specified goods are sold by it. (ii) If it 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 a mine or a quarry to another person, other than a public sector company, for the use of such parking lot or toll plaza or mine or quarry for the purposes of business provided it carries on any business or profession whose total sales or turnover exceeds ₹1 crore in the financial year immediately preceding the financial year in which such lease, licence or contract, etc., is awarded by it. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Collection of Tax at Source

1. Person being seller responsible for tax collection at source

According to section 206C(1), every person being a seller of specified goods is required to collect tax from buyer at the prescribed rate, 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 buyer either in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.

2. When individual or HUF is liable to collect tax

An individual or HUF is liable to collect tax at source :

(i) if it is a seller of specified goods, carries on business or profession, whose total sales or turnover exceeds ₹1 crore in the financial year immediately preceding the financial year in which specified goods are sold by it.

(ii) If it 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 a mine or a quarry to another person, other than a public sector company, for the use of such parking lot or toll plaza or mine or quarry for the purposes of business provided it carries on any business or profession whose total sales or turnover exceeds ₹1 crore in the financial year immediately preceding the financial year in which such lease, licence or contract, etc., is awarded by it.