Tax collection at source on tendu leaves requires seller collection, subject to declaration-based exemption for specified non-trading use.

Tax collection at source applies to sales of tendu leaves, with the seller required to collect TCS at 2% and no monetary threshold prescribed. Collection is not required if a resident buyer furnishes a declaration confirming use for manufacturing, processing, production or generation of power rather than trading. The provision continues the corresponding framework under the Income-tax Act, 1961, including the collection rate, timing and declaration-based exception.

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