Section 206CA of the Act deals with the obtaining of tax collection account number. Every person collecting tax as per the provisions of 206C shall apply for a Tax collection account number to the Assessing officer. After the allotment of such number, the Assessee shall quote the number in all the challans used for payment, all the return delivered, in all the certificates furnished u/s 206C, etc.
“TCS is the Tax Collected at Source by the seller (collector) from the buyer/ lessee (collectee/ payee)” Every person, being a seller, shall collect tax at source (TCS) from the buyer of goods specified in section 206 C (1).
Tax (TCS) has to be collected at the time of debiting of the amount payable to the buyer or at the time of receipt of payment, whichever is earlier.
The nature of goods covered under 206C is:
| Sl No. | Nature of goods | Percentage of TCS | |
| (i) | Alcoholic Liquor for human consumption | One per cent | |
| (ii) | Tendu leaves | Five per cent | |
| (iii) | Timber obtained under a forest lease | Two and one-half per cent | |
| (iv) | Timber obtained by any mode other than under a forest lease | Two and one-half per cent | |
| (v) | Any other forest produce not being timber or tendu leaves | Two per cent | |
If a person fails to comply with the provisions of Section 206CA, then he shall be liable to penalty of Ten thousand rupees under section 272BBB.
Reference:
Insertion of new section 206CA.
After section 206C of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2002, namely:—
“206CA. Tax-collection account number.—
(1) Every person collecting tax in accordance with the provisions of section 206C, shall, within such time as may be prescribed, apply to the Assessing Officer for the allotment of a tax-collection account number.
(2) Where a tax collection account number has been allotted to a person, such person shall quote such number—
(a ) in all challans for the payment of any sum in accordance with the provisions of sub-section (3) of section 206C;
(b ) in all certificates furnished under sub-section (5) of section 206C;
(c ) in all the returns delivered in accordance with the provisions of sub-section (5A) or sub-section (5B) of section 206C to any income-tax authority; and
(d ) in all other documents pertaining to such transactions as may be prescribed in the interest of revenue.”.