AMENDMENTS REGARDING TCS ON COUNTRY
LIQUOR AND SCRAP TO BE EFFECTIVE FROM SEPTEMBER 1, 2003
The Finance Ministry
has postponed the date of coming into effect of the amendments
made by finance Act, 2003 in the matter of collection of tax at
source from dealers in country liquor and scrap to 1st
September, 2003. These amendments were to become effective from
1st June, 2003.
The step follows
representations from various quarters including State Government
authorities in the matter of various consequences flowing from
the above amendments.
Section 206C
of the Income-tax Act provides for collection of tax at source
from dealers of country liquor by the manufacturer/distiller at
the time of purchase by the dealers and deposit of the same to
the credit of Central Government. The scheme which came into effect
vide Finance Act, 1988, however, excluded from the purview of
the scheme, the buyers who do not obtain goods by way of auction
and where the sale price of such goods to be sold by the buyer
is fixed by or under any State Act.
Finance Act,
2003 removed the above condition from section 206C and made it
applicable irrespective of whether the buyer obtained the goods
by way of auction or the sale price of such goods were fixed under
the State Act. Further, while the scheme was applicable to buyers
at the first point of sale from manufacturers/distillers, Finance
Act, 2003 made it applicable to all buyers, except the consumer.
It also extended the scheme of tax collection at source to dealers
of scrap.
