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Direct Taxes Code Bill, 2010
Chapter XIII
B. Collection at source
202. Tax collection at source
- (1) Any person, being a seller, lessor or licensor, who is responsible for collecting any amount on account of any transaction specified in column (2) of the Table given below, shall collect from the buyer, lessee or licensee, as the case may be, a sum by way of income-tax, equal to the percentage, as specified in the corresponding entry in column (3) of the said table
Sl.No. Nature of goods or contract or license or lease Percentage (1) (2) (3) 1) Sale of alcoholic liquor for human consumption Three per cent 2 Sale of tendu leaves Three per cent 3 Sale of timber obtained under a forest lease or otherwise Three per cent 4 Sale of any other forest produce not being timber or tendu leaves Three per cent 5 Sale of scrap Three per cent 6 Grant of lease or licence or contract for parking lot Three per cent 7 Grant of lease or licence or contract for toll plaza Three per cent 8 Grant of lease or licence or contract for mining or quarrying Three per cent - (2) For the purposes of sub-section (1), the collection of an amount shall be deemed to have been made, if the amount has been received-
- (a) in cash;
- (b) by way of a cheque or a draft;
- (c) by debit to any account, whether called "suspense account" or by any other name; or
- (d) by any other mode as may be prescribed, whichever is earlier.
- (3) Any person collecting any amount under sub-section (1) shall pay the sum so collected to the credit of the Central Government within such time and manner as may be prescribed.
- (4) Every person responsible for collecting any amount under sub-section (1) shall furnish to the buyer, lessee or licensee referred to in sub-section (1), a certificate of tax collection within such time as may be prescribed .
- (5) Every person responsible for collecting any amount under sub-section (1) shall deliver, or cause to be delivered, a return of tax collection in the manner provided under sub-section sub-section (6).
- (6) The Board shall in respect of the return of tax collection, prescribe the following namely:-
- (a) the period in respect of which the return is to be furnished;
- (b) the form of the return and the particulars therein;
- (c) the manner of verification of the return;
- (d) the time by, and the medium in, which the return is to be delivered;
- (e) the income-tax authority, or any other person, authorised to receive the return; and
- (f) any other matter connected therewith.
203. Credit for tax collected.
- (1) All sums collected in accordance with the provisions of this Sub-chapter and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom such amount has been collected (in this section referred to as collectee).
- (2) For the purpose of giving credit in respect of tax collected, the Board may prescribe-
- (a) the procedure for giving credit to the collectee, or any other person;
- (b) the financial year for which such credit may be given; and
- (c) any other matter connected therewith.
204. Interpretations under Sub-chapters A and B.
- (1) In Sub-chapter A-
- (a) "broadcasting and telecasting" includes production of programmes for broadcasting or telecasting;
- (b) "contract" and "contractor" include "sub-contract" and "sub-contractor" respectively;
- (c) "professional or technical services" means services rendered by a person in the course of carrying on legal, medical, engineering, architectural or accountancy profession, technical consultancy, interior decoration or any other profession as notified by the Board;
- (d) "service contract" includes a contract for job work;
- (e) "work" includes manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer and not from any other person.
- (2) In Sub-chapter B-
- (a) "buyer" means a person who obtains in any sale, by way of auction, tender, or any other mode, goods of the nature specified in the Table given in sub-section (1) of section 202 or the right to receive any such goods but does not include,-
- (i) a public sector company, the Central Government, a State Government, an embassy, a high commission, legation, commission, consulate and trade representation of a foreign State, and a club; or
- (ii) a buyer in the retail sale of such goods, purchased by him for personal consumption;
- (b) "lessee or licensee" means a person other than a public sector company who is granted a lease or licence or is awarded a contract or is transferred, wholly or partly, any right or interest by a lessor or licensor;
- (c) "lessor or licensor" means a person who grants a lease or licence or enters into a contract or otherwise transfers, wholly or partly, any right or interest to a lessee or licensee;
- (d) "scrap" means waste from the manufacture or mechanical working of materials which is unusable because of breakage, wear and tear and other reasons;
- (e) "seller" means,-
- (i) the Central Government, a State Government or any local authority;
- (ii) a corporation or authority established by or under a Central, State or Provincial Act;
- (iii) any company, firm or co-operative society; and
- (iv) an individual or a Hindu undivided family, if the total sales, gross receipts or turnover from the business carried on by him exceed the monetary limits specified in sub-section (1) of section 88 during the financial year immediately preceding the financial year in which the goods of the nature specified in column (2) of the Table given in sub-section (1) of section 202 against serial numbers 1 to 5 are sold.
- (a) "buyer" means a person who obtains in any sale, by way of auction, tender, or any other mode, goods of the nature specified in the Table given in sub-section (1) of section 202 or the right to receive any such goods but does not include,-