Tax collection at source on alcoholic liquor sales requires sellers to collect tax on full consideration, subject to buyer-use declarations. Section 394(1) requires sellers of alcoholic liquor for human consumption to collect tax at source at 2% of the entire sale consideration, at the earlier ... Summary
Tax collection at source on alcoholic liquor sales requires sellers to collect tax on full consideration, subject to buyer-use declarations.
Section 394(1) requires sellers of alcoholic liquor for human consumption to collect tax at source at 2% of the entire sale consideration, at the earlier of debit to the buyer's account or receipt of payment. No monetary threshold applies. Collection is not required where a resident buyer furnishes the prescribed declaration that the goods will be used for manufacturing, processing, production, or power generation and not for trading. The seller must forward a copy of the declaration to the prescribed income-tax authority.
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