Tax collection at source applies to specified receipts, with exclusions for qualifying declarations, education loans, and prior withholding.

Collection of tax at source applies to specified receipts at the prescribed rate and arises at the earlier of debit of the amount payable or actual receipt. Resident buyers may secure non-collection through Form 127 where goods are used for manufacturing, processing, production or power generation rather than trading. Authorised dealers need not collect tax on certain foreign remittances, including remittances already subjected to collection and qualifying education loans. Collection is excluded where the buyer has deducted tax at source under another provision.

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