TCS provisions under section 206C to also be attracted on sale of gold coins and articles weighing 10 gms
The Finance Act, 2012 had inserted sub-section (1D) in section 206C to provide for collection of tax at source on sale of bullion or jewellery, if the consideration exceeds Rs.2 lakh and Rs.5 lakh, respectively.
A coin or article weighing 10 gms or less was, however, excluded from the applicability of the provisions of this section.
Since the exclusion was giving an opportunity for misuse, the same is now proposed to be withdrawn with effect from 1.6.2013. Consequently, the provisions for tax collection at source under section 206C would be attracted even in respect of sale of coins or articles weighing 10 gms or less, if the consideration exceeds Rs. 2 lakh.
Related Amendment to Finance Bill 2013 which presented in Lok sabha on 28.02.2013 and as passed by Lok Sabha on 30.04.2013
20. Page 22, after line 42,
43E (New) Amendment of Section 206C
43E In Sub-section (ID) of section 206C of the Income-tax Act, the brackets and words “(excluding any coin or any other article weighing ten grants of less)” shall be omitted with effect from the 1st day of June, 2013.
Whether this TCS will also be applicable for Banks who are selling gold coins to the public? Please reply