51[BB.—Collection
at source
Profits and gains from
the business of trading in alcoholic liquor, forest produce, scrap, etc.52
53206C. 54[55(1) Every person,
being a seller shall, 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 amount56 from the said buyer
in cash or by the issue of a cheque or draft or by any other mode, whichever is
earlier, collect from the buyer of any goods 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:
57[TABLE
Sl. No.
|
Nature of goods
|
Percentage
|
(1)
|
(2)
|
(3)
|
(i)
|
Alcoholic
Liquor for human consumption
|
One per cent
|
(ii)
|
Tendu leaves
|
Five per
cent
|
(iii)
|
Timber
obtained under a forest lease
|
Two and one-half
per cent
|
(iv)
|
Timber
obtained by any mode other than under a forest lease
|
Two and
one-half per cent
|
(v)
|
Any other
forest produce not being timber or tendu leaves
|
Two and
one-half per cent
|
(vi)
|
Scrap
|
One per
cent:]
|
58[Provided
that every person, being a seller shall at the time, during the period
beginning on the 1st day of June, 2003 and ending on the day immediately
preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into
force, of debiting of the amount payable by the buyer to the account of the
buyer or of receipt of such amount from the said buyer in cash or by the issue
of a cheque or draft or by any other mode, whichever is earlier, collect from
the buyer of any goods of the nature specified in column (2) of the Table as it
stood immediately before the 1st day of June, 2003, a sum equal to the
percentage, specified in the corresponding entry in column (3) of the said
Table, of such amount as income-tax in accordance with the provisions of this
section as they stood immediately before the 1st day of June, 2003.]]
59[(1A) Notwithstanding
anything contained in sub-section (1), no collection of tax shall be made in
the case of a buyer, who is resident in India, if such buyer furnishes to the
person responsible for collecting tax, a declaration in writing in duplicate in
the prescribed form60 and
verified in the prescribed manner to the effect that the goods referred to in
column (2) of the aforesaid Table are to be utilised for the purposes of
manufacturing, processing or producing articles or things and not for trading
purposes.
(1B) The person
responsible for collecting tax under this section shall deliver or cause to be
delivered to the Chief Commissioner or Commissioner one copy of the declaration
referred to in sub-section (1A) on or before the seventh day of the month next following
the month in which the declaration is furnished to him.]
61[(1C) Every person,
who grants a lease or a licence or enters into a contract or otherwise
transfers any right or interest either in whole or in part in any parking lot
or toll plaza or mine or quarry, to another person, other than a public sector
company (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 cash 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:
Table
Sl. No.
|
Nature of contract or licence or lease, etc.
|
Percentage
|
(1)
|
(2)
|
(3)
|
(i)
|
Parking lot
|
Two per cent
|
(ii)
|
Toll plaza
|
Two per cent
|
(iii)
|
Mining and
quarrying
|
Two per
cent.]
|
62[Explanation 1.—For
the purposes of this sub-section, “mining and quarrying” shall not include
mining and quarrying of mineral oil.
Explanation 2.—For the
purposes of Explanation 1, “mineral oil” includes petroleum and natural
gas.]
(2) The power to recover tax by collection under
sub-section (1) 63[or
sub-section (1C)] shall be without prejudice to any other mode of recovery.
(3) Any person collecting any amount under sub-section
(1) 63[or sub-section (1C)]
shall pay within 64[the
prescribed time] the amount so collected to the credit of the Central
Government or as the Board directs :
65[Provided that
the person collecting tax on or after the 1st day of April, 2005 in accordance
with the foregoing provisions of this section shall, after paying the tax
collected to the credit of the Central Government within the prescribed time, 66[prepare such
statements for such period as may be prescribed] and deliver or cause to be
delivered to the prescribed income-tax authority67, or the person
authorised by such authority, such statement in such form and verified in such
manner and setting forth such particulars and within such time as may be
prescribed.68]
69[(4) Any amount
collected in accordance with the provisions of this section 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 the amount has been collected and credit shall
be given to such person for the amount so collected in a particular assessment
year in accordance with the rules70 as may be
prescribed by the Board from time to time.]
(5) Every person collecting tax in accordance with the
provisions of this section shall within 71[such period as may be
prescribed72 from the
time of debit] or receipt of the amount furnish to the buyer 73[or licensee or
lessee] to whose account such amount is debited or from whom such payment is
received, a certificate to the effect that tax has been collected, and
specifying the sum so collected, the rate at which the tax has been collected
and such other particulars as may be prescribed72 :
74[74a[***]
Provided 75[***]
that the prescribed income-tax authority or the person authorised by such
authority referred to in sub-section (3) shall, within the prescribed time
after the end of each financial year 76[beginning on or after
the 1st day of April, 2008], prepare and deliver to the buyer referred to in
sub-section (1) or, as the case may be, to the licensee or lessee referred to
in sub-section (1C), a statement in the prescribed form77 specifying the amount
of tax collected and such other particulars as may be prescribed.]
78[(5A) Every
person collecting tax 79[before the
1st day of April, 2005] in accordance with the provisions of this section shall
80[prepare within the
prescribed time after the end of each financial year], and deliver or cause to
be delivered to the prescribed income-tax authority81 82[or such other
authority or agency as may be prescribed] such returns in such form and
verified in such manner and setting forth such particulars and within such time
as may be prescribed83 :]
84[Provided that
the Board may, if it considers necessary or expedient so to do, frame a scheme85 for the purposes of
filing such returns with such other authority or agency referred to in this
sub-section.]
86[(5B) Without
prejudice to the provisions of sub-section (5A), any person collecting tax,
other than in a case where the seller is a company, the Central Government or a
State Government, may at his option, deliver or cause to be delivered such
return to the prescribed income-tax authority81 in accordance with
such scheme87 as may be
specified by the Board in this behalf, by notification in the Official Gazette,
and subject to such conditions as may be specified therein, on or before the
prescribed time after the end of each financial year, on a floppy, diskette,
magnetic cartridge tape, CD-ROM or any other computer readable media
(hereinafter referred to as the computer media) and in the manner as may be
specified in that scheme88:
Provided that where
the person collecting tax is a company or the Central Government or a State
Government, such person shall, in accordance with the provisions of this
section, deliver or cause to be delivered, within the prescribed time after the
end of each financial year, such returns on computer media under the said
scheme.
(5C) Notwithstanding
anything contained in any other law for the time being in force, a return filed
on computer media shall be deemed to be a return for the purposes of
sub-section (5A) and the rules made thereunder and shall be admissible in any
proceedings made thereunder, without further proof of production of the
original, as evidence of any contents of the original or of any facts stated
therein.
(5D) Where the
Assessing Officer considers that the return delivered or caused to be delivered
under sub-section (5B) is defective, he may intimate the defect to the person
collecting tax and give him an opportunity of rectifying the defect within a
period of fifteen days from the date of such intimation or within such further
period which, on an application made in this behalf, the Assessing Officer may,
in his discretion, allow; and if the defect is not rectified within the said
period of fifteen days or, as the case may be, the further period so allowed,
then, notwithstanding anything contained in any other provision of this Act,
such return shall be treated as an invalid return and the provisions of this
Act shall apply as if such person had failed to deliver the return.]
(6) Any person responsible for collecting the tax who
fails to collect the tax in accordance with the provisions of this section,
shall, notwithstanding such failure, be liable to pay the tax to the credit of
the Central Government in accordance with the provisions of sub-section (3).
89[(6A) If any person
responsible for collecting tax in accordance with the provisions of this
section does not collect the whole or any part of the tax or after collecting,
fails to pay the tax as required by or under this Act, he shall, without
prejudice to any other consequences which he may incur, be deemed to be an
assessee in default in respect of the tax:
Provided that no
penalty shall be charged under section 221 from
such person unless the Assessing Officer is satisfied that the person has
without good and sufficient reasons failed to collect and pay the tax.]
(7) Without prejudice to the provisions of sub-section
(6), if the 90[person
responsible for collecting tax] does not collect the tax or after collecting
the tax fails to pay it as required under this section, he shall be liable to
pay simple interest at the rate of 91[one] per cent per
month or part thereof on the amount of such tax from the date on which such tax
was collectible to the date on which the tax was actually paid 92[and such interest
shall be paid before furnishing the quarterly statement for each quarter in
accordance with the provisions of sub-section (3)].
(8) Where the tax has not been paid as aforesaid,
after it is collected, the amount of the tax together with the amount of simple
interest thereon referred to in sub-section (7) shall be a charge upon all the
assets of the 93[person
responsible for collecting tax].]
94[(9) Where
the Assessing Officer is satisfied that the total income of the buyer 95[or licensee or
lessee] justifies the collection of the tax at any lower rate than the relevant
rate specified in sub-section (1) 95[or sub-section (1C)],
the Assessing Officer shall, on an application96 made by the buyer 97[or licensee or
lessee] in this behalf, give to him a certificate for collection of tax at such
lower rate than the relevant rate specified in sub-section (1) 97[or sub-section (1C)].
(10) Where a certificate under sub-section (9) 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.
(11) 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 a certificate under sub-section
(9) and the conditions subject to which such certificate may be granted and
providing for all other matters connected therewith.]
98[Explanation.—For
the purposes of this section,—
(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 in
sub-section (1) or the right to receive any such goods but does not include,—
99[(i) a public sector company, the Central
Government, a State Government, and an embassy, a high commission, legation,
commission, consulate and the 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;]
1[(b) “scrap”
means waste and scrap from the manufacture or mechanical working of materials
which is definitely not usable as such because of breakage, cutting up, wear
and other reasons;
(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) are sold.]]