Amendment of section 206C

Section 79 of the Finance Act, 1992 deals with amendment of section 206C. Amendment of section 206C. 79. In section 206C of the Income-tax Act, with effect from the 1st day of April, 1992,— (a) for sub-section (2), the following sub-section shall be substituted, namely: — "(1) Every person, being a seller shall, at the time off debiting of the amount payable by the buyer

Amendment of section 206C.

79. In section 206C of the Income-tax Act, with effect from the 1st day of April, 1992,—

(a) for sub-section (2), the following sub-section shall be substituted, namely: —

"(1) Every person, being a seller shall, at the time off debiting of the amount payable by the buyer to the account of the buyer or at the time 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 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
S.No	Nature of goods	Percentage
(1)	(2)	(3)
(i)	Alcoholic liquor for human consumption (other than Indian-made foreign liquor)	Fifteen per cent.
(ii)	Timber obtained under a forest lease	Fifteen per cent.
(iii)	Timber obtained by any mode other than under a forest lease	Five per cent.
(iv)	Any other forest produce not being timber	Fifteen per cent:

Provided that where the Assessing Officer, on an application made by the buyer, gives a certificate in the prescribed form that to the best of his belief any of the goods referred to in the afore said Table are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes, the provisions of this sub-section shall not apply so long as the certificate is in force.";

(b) after sub-section (8), the following Explanation shall be inserted, namely:—

'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,--

(i) a public sector company,

(ii) a buyer in the further sale of such goods obtained in pursuance of such sale, or

(iii) a buyer where the goods are not obtained by him 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; . ,

(b) "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.'.

[Finance Act, 1992]

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Section 79, The Finance Act, 1992 (Act 18 of 1992).