Tax collection at source on mineral sales requires sellers to collect tax on coal, lignite, and iron ore transactions.

Tax collection at source on sales of coal, lignite and iron ore is imposed on the seller at 2%. Collection arises at the earlier of debit of the buyer's account or receipt of consideration, with no monetary threshold for covered mineral sales. A declaration under section 394(2) is available as an exception. The earlier regime similarly applied to sellers and the same collection timing without a threshold, but prescribed a lower collection rate.

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