IMPLEMENTATION OF SCHEME OF TAX
COLLECTION AT SOURCE ON IMFL POSTPONED
The Ministry of Finance
has decided to postpone to September 1, 2003, the date of implementation
of new provisions extending the scheme of collection of tax at
source from dealers of Indian Made Foreign Liquor (IMFL). Earlier,
the scheme was to become effective from June 1, 2003.
The decision
follows representation from various quarters including State Government
authorities in the matter of various aspects of the scheme, as
the Ministry felt that it is necessary to look into all these
representations before the scheme is made applicable to dealers
in IMFL.
Finance Act,
2003 extended the scheme of collection of tax at source u/s 206C
of Income Tax Act, 1961 to dealers in Indian made foreign liquor
(wholesaler as well as retailer). Under the scheme the seller
whether it is government, corporation, manufacturer, distributor
of wholesaler is required to collect from the buyer, ta @ 10%
of the amount payable by the buyer at the time of sale of goods
and deposit the same to the credit of Central Government. Similar
provisions existed for country liquor since 1988.
