Collection of income-tax at source under section 206C of the Income-tax Act, 1961, in respect of profits and gains from the business of trading in alcoholic liquor, forest produce, etc.--Financial year 1992-93

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....06C of the Income-tax Act, in respect of profits and gains from the business of trading in alcoholic liquor, forest produce, etc., during the financial year 1991-92. 2. The Finance Act, 1992, does not make any change in the rates of tax applicable for the collection of tax at source under section 206C for the financial year 1992-93. However, section 44AC, which was hitherto inter-linked with section 206C, has been deleted by the Finance Act, 1992. Simultaneously, certain amendments consequential to the deletion of section 44AC, have been made in section 206C. 3.1 Sub-section (1) of the amended section 206C enjoins that every person, being a seller shall, at the time of debiting of the amount payable by the buyer, to the account of the....

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....  (ii) a buyer in the further sale of such goods obtained in pursuance of such sale, or  (iii) a buyer where the goods are not obtained by him by way of auction and where the sale price of such goods to be sold by the buyer is fixed by or under any State Act;" 3.3 The term "seller" means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society. 4. The amount of tax collectible at source at the rates referred to in paragraph 3.1 shall be increased by a surcharge at the rate of 15% where the buyer is a domestic company and at the rate of 12% in respect of other buyers. 5. It i....

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....specifying the sum so collected and the rate at which the tax has been collected and such other particulars as may be prescribed. On production of this certificate by the buyer, credit shall be given to him for the amount so collected in the assessment made under the Act for the assessment year for which such income is assessable. Reference in this regard may be made to rule 37D of the Income-tax Rules, 1962, and Form No. 27D prescribed thereunder. If a person fails to issue the certificate of tax collected at source by him, he shall be liable to pay by way of penalty, under section 272A, a sum which shall not be less than Rs.100 but which may extend to Rs.200 for every day during which the failure continues. (c) If any person responsibl....