Section 206C(6A)

Section 206C(6A) — the law in short

What the courts have decided on section 206C(6A), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Girishkumar Ramnarayan Shah v ITO (TDS) ITATCuts both waysValidity unconfirmed
  I sold scrap without collecting TCS and only got the buyers' Form 27C declarations years later. Has the officer any answer to that, and what about buyers who have already paid tax?
  The Tribunal held that neither s.206C(1A) nor s.206C(1B) prescribes any date by which the buyer must give the seller the declaration in Form 27C, so a belated declaration cannot be shut out where the seller shows he filed it as soon as he received it and its genuineness is not doubted. It restored the whole matter to the Assessing Officer to verify the Forms 27C and, separately, to give effect to the first proviso to s.206C(6A) for the buyers from whom Form 27BA had been obtained.
• M/s Sri Jayabharath Timber Depot v ITO (TDS), Tirunelveli ITATHelps departmentValidity unconfirmed
  I produced the buyers' Form 27C during the assessment, and later a Form 27BA from an accountant. The officer says both are too late. Is he right?
  On this order, yes. The Chennai Tribunal read s.206C(1A) with s.206C(1B) and held that the seller must either collect TCS at the time of sale or obtain the Form 27C declaration and file a copy with the Commissioner by the seventh day of the month next following the month of receipt, so that a Form 27C produced for the first time during assessment proceedings is not within a reasonable time. It also rejected the alternative plea under the first proviso to s.206C(6A), holding that a Form 27BA obtained on 24 April 2021 — seven years after the end of the relevant assessment years — came too late for the immunity, and dismissed both appeals.
• Statutory position — s.206C(6A) first proviso, Form 27BA, and the two interest rates in s.206C(7) from 1 April 2025 CBDT Circulars & InstructionsCuts both ways
  I did not collect TCS but my buyer has filed his return and paid the tax. Am I still an assessee in default, and what interest do I owe?
  The first proviso to s.206C(6A) says a person responsible for collecting tax under sub-section (1) or sub-section (1C) who fails to collect is not to be deemed an assessee in default if the buyer or licensee or lessee has furnished his return of income under s.139, has taken the amount into account in computing income in that return, and has paid the tax due on the income declared — and the collector furnishes a certificate to that effect from an accountant in the prescribed form. Rule 37J prescribes that certificate as Form 27BA, to be furnished to the Director General of Income-tax (Systems) or his authorised person in the procedures, formats and standards that officer specifies.
• Statutory position — s.206C(1F): one per cent on a motor vehicle above ten lakh rupees, extended to other notified goods CBDT Circulars & InstructionsCuts both ways
  I sell cars. When must I collect one per cent under s.206C(1F), and does it now catch anything besides motor vehicles?
  Sub-section (1F) requires every person being a seller who receives any amount as consideration for the sale of (i) a motor vehicle, or (ii) any other goods as may be specified by the Central Government by notification in the Official Gazette, of the value exceeding ten lakh rupees, to collect one per cent of the sale consideration from the buyer at the time of receipt of such amount. The second limb — 'any other goods, as may be specified by the Central Government by notification' — was brought in by Act No. 15 of 2024 with effect from 1 January 2025 (footnote 22 on the departmental page).

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.