ORDINANCE AMENDING SECTION 206-C OF IT ACT PROMULGATED

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The Taxation Laws (Amendment) Ordinance, 2003 has been promulgated today to amend certain provisions of the Income-tax Act, the Wealth-tax and the Expenditure-tax Act. The said Ordinance has, inter alia, amended the provisions of section 206C also. The amendments to the said section will take effect from today.

Section 206C of the Income-tax Act provides for collection of tax at source by sellers of certain specified goods. Finance Act, 2003 made certain amendments to the said section. Subsequent to these amendments, representations were received from various quarters, including State Government authorities, in the matter of various consequences flowing from the above amendments. It had been decided to postpone the coming into effect of the amendments made to section206C in the matter of collection of tax at source by sellers of country liquor, Indian made foreign liquor, scrap and timber till a final decision was taken in the matter by the Government.