Tax collection on lease and licence transfers requires withholding at payment and prescribed reporting obligations to tax authorities.

Persons granting leases, licences, contracts or other transfers of rights in parking lots, toll plazas, mines or quarries (other than to public sector companies) must, at the time of debiting the licensee's/lessee's account or at receipt of payment, collect tax from the licensee or lessee; the collection obligation and inclusion of "licensee or lessee" are effective from 1 October 2004, and from 1 April 2005 collectors must pay such tax to the Central Government, furnish prescribed quarterly statements, and such collected tax shall be treated as payment on behalf of the person from whom it was collected for assessment credit purposes.

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