Nature of Transaction Covered;
Under section 206C(1C),TCS is applicable if Leasing or licensing or transferring any right or interest in any
Parking Lot or
Toll Plaza or
Mine or Quarry for the purpose of Business.
Rate of TCS u/s 206C(1C):
Rate of Tax Collected at Source (TCS) u/s 206C(1C) is 2%.
TCS colletor is same as specified under section 206C(1).
Collectee is any person other than public sector company.
Read Also : Section 206C(1F): TCS on Sale of any Motor Vehicle
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:—
- Twice the rate specified in the relevant provision of this Act (or)
- At the rate of 5%
Additional Points:
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.
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).
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.
Colletor and collectee to indicate PAN in all correspondence, bills, etc. [Section 206CC(5)]:
Read Also : Section 206C(1G) :”TCS on Foreign Remittance Through Liberalized Remittance Scheme (LRS)
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.
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.
As per Section 206CC(7), the provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.
Note: For the purpose of this section “Mining Quarrying” shall not include mining and quarrying of “mineral oil” includes petroleum and natural gas.
