Octroi collected by agent is subject to tax under Section 206C(1C) of Income Tax Act

The Bombay HC held that octroi collected by an agent appointed by the assessee falls within the ambit of Section 206C(1C) of the Income Tax Act, 1961, and is liable for tax collection at source. The court distinguished octroi from toll and emphasized that the collection of octroi triggers the tax collection obligation under the said provision.

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The Bombay High Court heard an appeal regarding the liability to collect tax at source under Section 206C(1C) of the Income Tax Act, 1961 in relation to octroi collected by an agent appointed by the assessee. The appeal raised questions on whether octroi collected is different from toll and whether it falls within the ambit of Section 206C(1C).

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