section 206 of income tax Act
This query is : Resolved
08 June 2016
is agriculture, poultry , fishery covered under section 206 of income tax act 1961
08 June 2016
no, its not covered under section 206...
11 June 2016
but as per circular No. 22/16 dated 8th, June 2016 seller shall collect tax @1% from the purchaser on sale in cash of any goods or for any service
thus all goods including poultry goods are also included in any goods.
it means section 206 is applicable on poultry goods also.
Please Comment.
thus all goods including poultry goods are also included in any goods.
it means section 206 is applicable on poultry goods also.
Please Comment.
11 June 2016
but as per circular No. 22/16 dated 8th, June 2016 seller shall collect tax @1% from the purchaser on sale in cash of any goods or for any service
thus all goods including poultry goods are also included in any goods in any goods. it means section 206 is applicable on poultry goods also. Please Comment.
thus all goods including poultry goods are also included in any goods in any goods. it means section 206 is applicable on poultry goods also. Please Comment.
23 July 2025
You're referring to Section 206C of the Income Tax Act, 1961, which requires a seller to collect tax at source (TCS) on the sale of certain goods. The clarification you're looking for appears to be regarding the inclusion of certain goods, such as poultry, under this provision, as per the Circular No. 22/2016 dated June 8, 2016.
Let's break this down:
Key Points of Section 206C and the Circular:
Section 206C - Tax Collected at Source (TCS):
The TCS provisions under Section 206C apply to specific goods, primarily alcoholic liquor for human consumption, forest produce, scrap, minerals, timber, and others.
Under this section, the seller is required to collect tax at 1% from the buyer on the sale of goods or services specified in the section, provided the transaction is in cash.
Circular No. 22/2016 (June 8, 2016):
This circular addressed the inclusion of various goods under the TCS provisions of Section 206C, including poultry, fishery, and other related items.
The Circular clarified that poultry, fishery, and similar agricultural goods are now considered under the definition of "goods" for the purposes of TCS when sold in cash.
Does Section 206C Apply to Poultry?
Yes, poultry goods are included under Section 206C as per Circular No. 22/2016. The seller of poultry products is now required to collect tax at 1% on the cash sale of such goods to the buyer.
The key part is the method of payment—cash transactions are specifically mentioned in the circular. If the poultry goods are sold in cash, the seller must collect TCS at 1% from the purchaser.
Important Considerations:
TCS Rate: For cash sales, the TCS rate is typically 1%. For certain high-value items, it could be higher (e.g., 5% for certain goods like alcoholic beverages).
Exemptions: Section 206C may not apply in certain scenarios, such as when the sale is conducted in a manner other than cash (e.g., credit or cheque payments).
Practical Implication:
Poultry and similar agricultural or livestock products are now included within the TCS ambit, but only when sold in cash.
Sellers of poultry or related goods must ensure they are collecting 1% TCS from buyers on cash sales, and deposit this amount with the government.
Conclusion:
Yes, as per the Circular No. 22/2016, poultry goods fall under the provisions of Section 206C for cash transactions. This means that for cash sales of poultry goods, the seller must collect tax at 1% from the purchaser and remit it to the government.
Let's break this down:
Key Points of Section 206C and the Circular:
Section 206C - Tax Collected at Source (TCS):
The TCS provisions under Section 206C apply to specific goods, primarily alcoholic liquor for human consumption, forest produce, scrap, minerals, timber, and others.
Under this section, the seller is required to collect tax at 1% from the buyer on the sale of goods or services specified in the section, provided the transaction is in cash.
Circular No. 22/2016 (June 8, 2016):
This circular addressed the inclusion of various goods under the TCS provisions of Section 206C, including poultry, fishery, and other related items.
The Circular clarified that poultry, fishery, and similar agricultural goods are now considered under the definition of "goods" for the purposes of TCS when sold in cash.
Does Section 206C Apply to Poultry?
Yes, poultry goods are included under Section 206C as per Circular No. 22/2016. The seller of poultry products is now required to collect tax at 1% on the cash sale of such goods to the buyer.
The key part is the method of payment—cash transactions are specifically mentioned in the circular. If the poultry goods are sold in cash, the seller must collect TCS at 1% from the purchaser.
Important Considerations:
TCS Rate: For cash sales, the TCS rate is typically 1%. For certain high-value items, it could be higher (e.g., 5% for certain goods like alcoholic beverages).
Exemptions: Section 206C may not apply in certain scenarios, such as when the sale is conducted in a manner other than cash (e.g., credit or cheque payments).
Practical Implication:
Poultry and similar agricultural or livestock products are now included within the TCS ambit, but only when sold in cash.
Sellers of poultry or related goods must ensure they are collecting 1% TCS from buyers on cash sales, and deposit this amount with the government.
Conclusion:
Yes, as per the Circular No. 22/2016, poultry goods fall under the provisions of Section 206C for cash transactions. This means that for cash sales of poultry goods, the seller must collect tax at 1% from the purchaser and remit it to the government.
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