Dear Experts,
Please suggest whether Form 26C u/s 206C of the Income Tax Act shall be collected from the buyer of the scrap once in the lifetime of the business or such form shall be collected on a periodic basis. This Form shall be applicable only if the buyer is purchasing the scrap for manufacturing purpose and not for trading purpose.
Regards
Toms
AS PER SEC 206C, SUCH FORM SHOULD BE SUBMITTED TO THE COMMISSIONER OF INCOME TAX WITHIN 7 DAYS FROM THE LAST DAY OF THE MONTH. HENCE, FROM THE WORDINGS OF THE SECTION, IT CAN BE CONCLUDED THAT THE FORM SHOULD BE COLLECTED MONTHLY & NOT ANNUALLY.
Dear Pracheta,
Thanks for your prompt reply. But the Act says
The person responsible for collecting tax under this section shall deliver or cause to be delivered to the Chief Commissioner or Commissioner one copy of the declaration referred to in sub-section (1A) on or before the seventh day of the month next following the month in which the declaration is furnished to him.
So can we interpret that whenever the first & formost declaration is furnished, it shall be submitted to the CC or CIT within the specified time limit OR every month we have to collect the declaration and submit it to CC or CIT within the specified time limit.
Regards
Toms
CAclubindia
