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

Tax collection at source applies to sales of coal, lignite and iron ore. The seller must collect tax at source at 2% under section 394(1), Table, serial number 5, at the earlier of debit to the buyer's account or receipt of sale consideration. No monetary threshold applies. A declaration mechanism is available under section 394(2). The covered minerals, seller-based collection responsibility, collection timing and nil threshold remain unchanged from the corresponding earlier provision, while the rate increases from 1% to 2%.

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