TDS Collection on Transfer of License of Toll plaza Mines or Quarry

Every person who grants a lease or license or enter into a contract or otherwise transfers any right or interest in whole or in part of any parking lot or toll plaza or mine or quarry to another person, other than a public sector company, is liable to collect tax at source for the use of parking lot or toll plaza or quarry for the purpose of business.

Tax collection at Lower Rate. Where the Assessing Officer is satisfied that the total income of the buyer or the lessee or the licensee justifies the collection of the tax at any lower rate than the rate specified the Assessing Officer is required, on an application made by the buyer/lessee/licensee in Form No.13 in this behalf, to give to him a certificate for collection of tax at such lower rate.
                Where such certificate is given, the person responsible for collecting the tax is, until such certificate is cancelled by the Assessing Officer, to collect the tax at the rates specified in such certificate remains valid for the the assessment year specified in that certified in that certificate unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
                 An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate. The certificate is valid only for the person named therein. The certificate is issued direct to the person responsible for collecting the tax under advice to the buyer or lessee or licensee who made an application for issue of such certificate.
Other modes of Recovery not affected. Power to recover tad by collection is without prejudice to any other mode of recovery.
Other Requirements/Provisions
Time to deposit the Tax
 All sums collected should be paid to the credit of the government within one week from the last day of the month in which collection is made.
Quarterly Returns.
After paying the tax collected to the credit of the Central Government within the prescribed time-limit, the person collecting such tax is required to prepare quarterly statements for the period ending on 30 June, 30 September, 31 December and 31 March in each financial year.
              Such statements should be prepared in such form and verified in such manner as may be prescribed.
              Statements so prepared should be delivered to the prescribed income tax authority or the person authorized by such authority. It is operative form 1 April 2005.
Credit for Tax collected lat Source.
          Every person collecting tax at source is liable to issue a certificate to the buyer or licensee within one month from the end of the month during which amount is debited to the account of the buyer or licensee or lessee or payment is received from the buyer or licensee or lessee, as the case may be.
               However, the requirement of issuing a certificate is being dispensed with in, in respect of tax collected at source on or after 1 April 2010.
                  The prescribed income-tax authority or the person so authorized by it, is required to issue a statement after the end of each financial year beginning on or after 1 April 2008 in the prescribed to the buyer or lessee specifying the amount of tax collected. Such statement is to be given by 31 July after the end so such financial year.
Annual Return on Computer Media.
Every person collecting tax at source before 1 April 2005 is liable to prepare a return within the prescribed time-limit after the end of each financial year. Such return should be furnished to the income-tax authority or the person so authorized within such time as may be prescribed. The requirement to furnish annual return of tax collected lat source on or after 1 April 2005 have been dispensed with. It is operative w.e.f 1-4-2006.
Annual Return on Computer media
Any person collecting tax at source may, at his option, furnish annual return on a computer readable media in accordance with such scheme, as may be specified by the Board. Such return may be on floppy, diskette, magnetic cartridge tape, CD-ROM and others.
             Such return is deemed to be a valid return for the purposes of Sec. 206C (5A). It will be admissible in any proceedings without further proof of production of the original, as evidence of any contents of the original or of any facts stated therein.
Intimation of Defects
Where the return on computer readable media is found defective, the Assessing Officer may intimate the defect to the person collecting tax and give him an opportunity to rectify the defect within 15 days from the date of such intimation or such further extended period as may be allowed. If the defect is not rectified, the return is treated as invalid.
Penalty for Failure to deliver the Return/Certificate
Where any person collecting tax at source fails to furnish the return of tax collection or fails to issue the certificate to the buyer or lessee for the tax collected within the prescribed time, he is liable for penalty which is Rs 100 per day for every day during which the failure continues.
Consequences for Non-collection or Non-payment of Tax collected
 Where any person, liable to collect tax at source, fails to collect such tax, he is lianle to pay suchy tax to the credit of the Central Government within prescribed time.
            From the AY 2007-2008 and onward, if any person responsible for collecting tax, does not collect the whole or any part of the tax or after collecting, fails to pay the tax within the prescribed time, he is deemed to be an assessee in default. However, the Assessing Officer is required not to impose penalty on such person unless he is satisfied that such person has failed to collect and pay the tax without good and sufficient reasons.
              If the person responsible for collecting tax does not collect the tax or after collecting the tax fails to pay it within the prescribed tome, he is liable to pay simple interest @ 1% p.m or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid. Such interest is to be paid before furnishing the quarterly statement for each quarter, i.e. 30 June, 30 September, 31 December and 31 March. It is operative w.e.f 1-6-2006.
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