Tax collection at source applies at debit or receipt, subject to resident-use declarations and anti-double-collection safeguards.

Tax collection at source on specified receipts arises at the earlier of debit of the amount payable or actual receipt. Resident buyers may obtain non-collection by furnishing Form 127 declaring that goods will be used for manufacturing, processing, production or power generation and not for trading. Collection is excluded for specified foreign remittances and where the buyer has deducted tax at source under another provision, preventing double collection.

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