Quick Summary
The Central Board of Direct Taxes (CBDT) has issued a key update via Notification No. 6/2025 dated January 6, 2025, exempting Units of International Financial Services Centres (IFSC) from being treated as buyers under Section 206C(1H) of the Income-tax Act, 1961. This provision pertains to tax collection at source (TCS) on goods purchases. According to the notification, IFSC Units, which are claiming deductions under Section 80LA of the Income-tax Act, are not required to be subjected to TCS on
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FAQ :
The CBDT has exempted Units of International Financial Services Centres (IFSC) from being treated as buyers for the purpose of tax collection at source (TCS) on goods purchases under Section 206C(1H) of the Income-tax Act.
Only IFSC Units that are claiming deductions under Section 80LA of the Income-tax Act are eligible for this exemption.
Eligible IFSC Units must submit a verified statement-cum-declaration in Form No. 1A to their sellers, specifying the ten consecutive assessment years for which they claim deductions under Section 80LA.
Upon receiving the form, sellers must stop collecting TCS on transactions with the exempt IFSC Units and accurately report these exempt transactions in their tax collection statement.
The notification is effective from January 1, 2025.
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