Tax collection 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% at the earlier of debiting the buyer's account or receiving payment. No monetary threshold applies. A declaration mechanism is available under Section 394(2). Compared with the earlier regime, the collection rate increases from 1% to 2%, while the seller's role, collection timing and absence of a threshold remain unchanged.

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