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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 299
ANSWERED ON:  03.02.2017
Rolling Back of TCS
UDIT RAJ
Will the Minister of



FINANCE be pleased to state:-


299. DR. UDIT RAJ:
Will the Minister of FINANCE be pleased to state:
(a) whether under provisions of section 206 C of the Income Tax Act, Tax Collected at Source (TCS) is applicable on timber obtained under forest produce in India under a forest lease or other than that, if so, the details thereof;
(b) whether TCS is collected at the rate of 2.5% for timber imported into India, if so, the details thereof;
(c) whether the timber merchants have made a request to roll back the TCS, if so, the details thereof; and
(d) the steps taken by the Government in this regard?


ANSWER
(a) Under Section 206 C of the Income-tax Act, 1961, Tax Collected at Source (TCS) is applicable at the rate of 2.5% on the sale of timber obtained under a forest lease and 2.5% on timber obtained by any mode other than under a forest lease.
(b) Yes Madam, TCS is applicable at the rate of 2.5% on timber imported into India.
(c) Yes Madam. An association of timber merchants has requested for roll-back of the provisions of tax collection at source in case of imported timbers.
(d) The suggestions regarding amendments to provisions of direct tax laws were examined during the annual Budget exercise, 2017 and the suggestions for roll-back of TCS were not found to be feasible.

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