Section 272BBB: Failure to comply with provisions of S. 206CA
Section 272BBB explains that if a person fails to comply with the provisions of 206CA, then he will be imposed with a penalty of ten thousand rupees through an order passed by the Assessing Officer. Also no order shall be passed by the Assessing officer unless the person to whom the penalty is imposed is given an opportunity of being heard.
Now what is 206CA?
206CA relates to Tax Collected at Source.
TCS is the Tax Collected at Source by the seller (collector) from the buyer/ lessee (collectee/ payee). The goods are as specified u/s 206C of the Income Tax Act, 1961.
Every person who is covered under the provisions of S. 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.
If a person fails to comply with the provisions of Section 206CA, then he shall be liable to penalty of Ten thousand rupees u/s 272BBB.
The nature of goods covered under 206C are:
| Sl. No. | Nature of Goods | Percentage of TCS |
| 1. | Alcoholic Liquor for human consumption | One per cent |
| 2. | Tendu leaves | Five per cent |
| 3. | Timber obtained under a forest lease | Two and one-half per cent |
| 4. | Timber obtained by any mode other than under a forest lease | Two and one-half per cent |
| 5. | Any other forest produce not being timber or tendu leaves | Two and one-half per cent |
| 6. | Scrap | One per cent |
| Section | Nature of default | Minimum penalty | Maximum penalty |
| (1) | (2) | (3) | (4) |
| 272BBB | Failure to comply with provisions of S. 206CA (applicable from June 1,2002 to September 30,2004) | A sum of Rs.10,000 | A sum of Rs. 10,000 |
Reference:
Section 272BBB, 206CA of Income tax act, 1961-
Penalty for failure to comply with the provisions of S. 206CA u/s 272BBB
(1) If a person fails to comply [before the 1st day of October, 2004] with the provisions of S. 206CA, he shall, on an order passed by the Assessing Officer, pay, by way of penalty, a sum of ten thousand rupees.
(2) No order under sub-section (1) shall be passed unless the person, on whom the penalty is proposed to be imposed, is given an opportunity of being heard in the matter.
206CA: Tax Collection Account Number
(1) Every person collecting tax in accordance with the provisions of S. 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 S. 206C;
(b) in all certificates furnished under sub-section (5) of S. 206C;
(c) in all the returns delivered in accordance with the provisions of sub-section (5A) or sub-section (5B) of S. 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:
Provided that the provisions of this section shall not apply on or after the 1st day of October, 2004.
delivered or caused to be delivered in accordance with the provisions of section 206 to any income-tax authority.
(iv) in all statements prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (3) of section 200:
Provided that the Central Government may, by notification in the Official Gazette, specify different dates from which the provisions of this sub-section shall apply in respect of any class or classes of persons:
Provided further that nothing contained in sub-sections (5A) and (5B) shall apply in case of a person whose total income is not chargeable to income-tax or who is not required to obtain permanent account number under any provision of this Act if such person furnishes to the person responsible for deducting tax, a declaration referred to in section 197A in the form and manner prescribed there under to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.
(5C) Every buyer [or licensee or lessee] referred to in section 206C shall intimate his permanent account number to the [person responsible for collecting tax] referred to in that section.
(5D) Every person collecting tax in accordance with the provisions of section 206C shall quote the permanent account number of every buyer [or licensee or lessee] referred to in that section—
(i) in all certificates furnished in accordance with the provisions of sub-section (5) of section 206C;
(ii) in all returns prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (5A) or sub-section (5B) of section 206C to an income-tax authority;
(iii) in all statements prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (3) of section 206C.
(6) Every person receiving any document relating to a transaction prescribed under clause (c) of sub-section (5) shall ensure that the Permanent Account Number [or the General Index Register Number] has been duly quoted in the document.
(7) No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.
Explanation.—
For the removal of doubts, it is hereby declared that any person, who has been allotted a permanent account number under any clause other than clause (iv) of sub-section (1), shall not be required to obtain another permanent account number and the permanent account number already allotted to him shall be deemed to be the permanent account number in relation to fringe benefit tax.
(8) The Board may make rules providing for—
(a) the form and the manner in which an application may be made for the allotment of a permanent account number and the particulars which such application shall contain;
(b) the categories of transactions in relation to which Permanent Account Numbers [or the General Index Register Number] shall be quoted by every person in the documents pertaining to such transactions;
(c) the categories of documents pertaining to business or profession in which such numbers shall be quoted by every person;
(d) class or classes of persons to whom the provisions of this section shall not apply;
(e) the form and the manner in which the person who has not been allotted a Permanent Account Number or who does not have General Index Register Number shall make his declaration;
(f) the manner in which the Permanent Account Number or the General Index Register Number shall be quoted in respect of the categories of transactions referred to in clause (c)
(g) the time and the manner in which the transactions referred to in clause (c) shall be intimated to the prescribed authority.
Explanation.—
For the purposes of this section,—
(a) “Assessing Officer” includes an income-tax authority who is assigned the duty of allotting permanent account numbers;
(b) “Permanent account number” means a number which the Assessing Officer may allot to any person for the purpose of identification and includes a permanent account number allotted under the new series;
(c) ”permanent account number under the new series” means a permanent account number having ten alphanumeric characters and issued in the form of a laminated card;
(d) “General Index Register Number” means a number given by an Assessing Officer to an assessee in the General Index Register maintained by him and containing the designation and particulars of the ward or circle or range of the Assessing Officer.