Amcount.com - Liability to collect tax

Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount by issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer as income tax, the sum specified in the following table on the goods mentioned therein:

S No.	Nature of Goods	Percentage
1.	Alcoholic Liquor for human consumption	1%
2.	Tendu leaves	5%
3.	Timber obtained under a forest lease	2.5%
4.	Timber obtained by any mode other than under a forest lease	2.5%
5.	Any other forest produce not being timber or tendu leaves.	2.5%
6.	Scrap	1%

PLEASE NOTE:

Buyer means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the table above, the right to receive any such goods but does not include:

A Public sector company, the Central Government, a State Government, and an embassy, a high commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or
A buyer in the retail sale of such goods purchased by him for personal consumption.

Seller means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society and also includes an Individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under Section 44AB during the financial year immediately preceding the financial year in which the goods of the nature specified in the table above are sold.
Scrap means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons.