Amendment of section 206C.
95. In section 206C of the Income-tax Act with effect from the 1st day of October, 2020,—
| (I) | after sub-section (1F), the following sub-sections shall be inserted, namely:— | |
| '(1G) Every person,— |
| (a) | being an authorised dealer, who receives an amount, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalised Remittance Scheme of the Reserve Bank of India; | |
| (b) | being a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package, |
| shall, at the time of debiting the amount payable by the buyer or at the time of receipt of such amount from the said buyer, by any mode, whichever is earlier, collect from the buyer, a sum equal to five per cent of such amount as income-tax: | ||
| Provided that the authorised dealer shall not collect the sum, if the amount or aggregate of the amounts being remitted by a buyer is less than seven lakh rupees in a financial year and is for a purpose other than purchase of overseas tour program package: | ||
| Provided further that the sum to be collected by an authorised dealer from the buyer shall be equal to five per cent of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, where the amount being remitted is for a purpose other than purchase of overseas tour program package: | ||
| Provided also that the authorised dealer shall collect a sum equal to one half per cent of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education: | ||
| Provided also that the authorised dealer shall not collect the sum on an amount in respect of which the sum has been collected by the seller: | ||
| Provided also that the provisions of this sub-section shall not apply, if the buyer is,— |
| (i) | liable to deduct tax at source under any other provision of this Act and has deducted such amount; | |
| (ii) | the Central Government, a State Government, an embassy, a High Commission, a legation, a commission, a consulate, the trade representation of a foreign State, a local authority as defined in the Explanation to clause (20) of section 10 or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. |
| Explanation.—For the purposes of this sub-section,— |
| (i) | \"authorised dealer\" means a person authorised by the Reserve Bank of India under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999) to deal in foreign exchange or foreign security; | |
| (ii) | \"overseas tour programme package\" means any tour package which offers visit to a country or countries or territory or territories outside India and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of similar nature or in relation thereto. |
| (1H) Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent of the sale consideration exceeding fifty lakh rupees as income-tax: | ||
| Provided that if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of section 206CC shall be read as if for the words \"five per cent\", the words \"one per cent\" had been substituted: | ||
| Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount. | ||
| Explanation.—For the purposes of this sub-section,— |
| (a) | \"buyer\" means a person who purchases any goods, but does not include,— |
| (A) | the Central Government, a State Government, an Embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or | |
| (B) | a local authority as defined in the Explanation to clause (20) of section 10; or | |
| (C) | a person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein; |
| (b) | \"seller\" means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. |
| (1-I) If any difficulty arises in giving effect to the provisions of sub- section (1G) or sub-section (1H), the Board may, with the approval of the Central Government, issue guidelines for the purpose of removing the difficulty. | ||
| (1J) Every guideline issued by the Board under sub-section (1-I) shall be laid before each House of Parliament, and shall be binding on the income-tax authorities and on the person liable to collect the sum.'; | ||
| (II) | in sub-section (2), for the words, brackets, figures and letter \"sub-section (1) or sub-section (1C)\", the words \"this section\" shall be substituted; | |
| (III) | in sub-section (3), for the words, brackets, figures and letter \"sub-section (1) or sub-section (1C)\", the words \"this section\" shall be substituted; | |
| (IV) | in sub-section (6A), in the first proviso, for the words \"in accordance with the provisions of this section\", the words, brackets, figures and letter \"in accordance with the provisions of sub-section (1) and sub-section (1C)\" shall be substituted; | |
| (V) | in the Explanation, in clause (c),— |
| (i) | for the word \"means\", the words, brackets, figures and letter \"with respect to sub-section (1) and sub- section (1F) means\" shall be substituted; | |
| (ii) | for the words, brackets, letters and figures \"the monetary limits specified under clause (a) or clause (b) of section 44AB\", the words \"one crore rupees in case of business or fifty lakh rupees in case of profession\" shall be substituted. |