Section 206CCA — the law in short
What the courts have decided on section 206CCA, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.206AB and s.206CCA omitted, and s.206C(1H) disapplied, from 1 April 2025
CBDT Circulars & InstructionsCuts both waysValidity unconfirmed
Do I still have to run the compliance check and deduct at the higher non-filer rate, and does my client still have to collect TCS on his sales of goods?
No to both, for anything on or after 1 April 2025. Section 206AB and section 206CCA were omitted by the Finance Act 2025 with effect from 1 April 2025 and no longer exist. Section 206C(1H) has not been omitted from the statute book, but a third proviso inserted by the Finance Act 2025 provides that nothing contained in that sub-section shall apply from 1 April 2025, and the department's own guidance states that the provisions of s.206C(1H) are not applicable from that date and that s.194Q applies to the sale of goods.
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.