Executive Summary:
This notification from the Central Board of Direct Taxes amends the Income-tax Rules, 1962. It specifies the classes of buyers to whom the provisions of subsection 1D of section 206C of the Income-tax Act, 1961 shall not apply regarding the sale of goods (other than bullion or jewellery) or providing any service. These rules are called the Income-tax 21st Amendment Rules, 2016, and came into force on August 19, 2016.
Key Points / Main Content:
* **Amendment to Income-tax Rules, 1962:**
* Rule 37CB is inserted after rule 37CA and before 37D in the Income-tax Rules, 1962.
* **Class or Classes of Buyers Exempted from Section 206C(1D):**
* The provisions of subsection 1D of section 206C do not apply to the following classes of buyers regarding the sale of any goods (other than bullion or jewellery) or providing any service:
* Government
* Embassies, Consulates, High Commissions, Legations, or Commissions and trade representations of a foreign state.
* Institutions notified under the United Nations Privileges and Immunities Act, 1947.
Impact Analysis:
**Sellers of Goods (other than bullion or jewellery) and Service Providers:**
* Impact: Certain sales or services to the specified classes of buyers (Government, foreign state representations, and UN institutions) are not subject to the provisions of subsection 1D of section 206C.
* Action Required: Identify buyers falling under the exempted categories to determine when not to apply the provisions of subsection 1D of section 206C.
**Central Board of Direct Taxes (CBDT):**
* Impact: Responsible for implementing and enforcing the amended Income-tax Rules, 1962.
* Action Required: Ensure the updated rules are communicated and followed by relevant parties.
**Buyers (Government, Foreign State Representations, UN Institutions):**
* Impact: Exempted from provisions of subsection 1D of section 206C when purchasing goods other than bullion and jewellery or services.
* Action Required: Be aware of their exemption status to ensure correct application of tax regulations.
Key Entities Referenced
Central Board of Direct Taxes: A government organization under the Ministry of Finance responsible for direct tax administration in India. The notification is issued by this board.
Income-tax Act, 1961: A law governing income tax in India. Section 206C and 295 of this act are referenced as the source of power for the notification.
Income-tax Rules, 1962: A set of rules framed under the Income-tax Act, 1961, providing detailed procedures for income tax implementation. This notification amends these rules.
Income-tax 21st Amendment Rules, 2016: The title of the new rules being introduced through this notification, amending the Income-tax Rules, 1962.
Section 206C: A section of the Income-tax Act, 1961, related to Tax Collection at Source (TCS). Subsections 1D and 1E are specifically mentioned.
Official Gazette: The official government publication where the notification is to be published to bring it into effect.
United Nations Privileges and Immunities Act, 1947: An act related to privileges and immunities granted to the United Nations and its related organizations. Institutions notified under this act are exempted from certain provisions.
Ministry of Finance: A ministry of the Government of India.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (ii)
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No. 2065] NEW DELHI, FRIDAY, AUGUST 19, 2016/SRAVANA 28, 1938
िव(cid:7275) म(cid:7074)ं ालय
(राज(cid:7021)व िवभाग)
(के(cid:7008)(cid:7076)ीय (cid:7079)(cid:7004)य(cid:6979) कर बोड)(cid:6981)
अिधसचू ना
नई (cid:7408)द(cid:7016)ली, 19 अग(cid:7021)त , 2016
आय-कर
का.आ. 2747(अ).– के(cid:7008)(cid:7076)ीय (cid:7079)(cid:7004)य(cid:6979) कर बोड,(cid:6981) आय-कर अिधिनयम, 1961 (1961 का 43) क(cid:7409) धारा 295 के साथ
प(cid:7407)ठत धारा 206 ग क(cid:7409) उपधारा (1ड.) (cid:7367)ारा (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करत े (cid:7263)ए, आय-कर िनयम, 1962 का और सशं ोधन
करने के िलए िन(cid:7388)िलिखत िनयम बनाती ह,ै अथा(cid:6981)त ्:-
1. (1) इन िनयम(cid:7298) का संि(cid:6979)(cid:7385) नाम आय-कर (इ(cid:7333)(cid:7409)सवा ँसंशोधन) िनयम, 2016 ह ै।
(2) य ेराजप(cid:7074) म(cid:7286) (cid:7079)काशन क(cid:7409) तारीख को (cid:7079)वृ(cid:7275) ह(cid:7298)ग े।
2. आय-कर िनयम, 1962, (िजसे इसम (cid:7286)इसके प(cid:7391)ात् उ(cid:7334) िनयम कहा गया ह)ै म (cid:7286)िनयम 37गक के प(cid:7391)ात ्और िनयम 37घ स े
पहले िन(cid:7388)िलिखत िनयम अंत:(cid:7021)थािपत (cid:7408)कया जाएगा, अथा(cid:6981)त ्:-
“(cid:7059)ेता(cid:7312) का/के वग(cid:6981) ftUgsa धारा 206 ग क(cid:7409) उपधारा (1घ) के उपबंध लागू नह(cid:7277) ह(cid:7298)गे ।
37गख.(1) (cid:7408)कसी माल के िव(cid:7059)य (सोना, चांदी या आभूषण स े िभ(cid:7382)) अथवा (cid:7408)कसी सेवा के (cid:7079)दान करन े के संबंध म (cid:7286) धारा
206ग क(cid:7409) उपधारा (1घ) के उपबंध िन(cid:7388)िलिखत वग(cid:6981) या वग(cid:7300) के (cid:7059)ेता(cid:7312) को लागू नह(cid:7277) ह(cid:7298)ग,े अथा(cid:6981)त ्:
(i) सरकार ;
(ii) िवदशे ी रा(cid:6996)य के राजदतू ावास, वािणि(cid:6996)यक दतू ावास, उ(cid:7340)ायु(cid:7334), दतू ावास और (cid:7390)ापार (cid:7079)ितिनिध(cid:7004)व ;
(iii) संयु(cid:7334) रा(cid:7398) (िवशेषािधकार और उ(cid:7008)मुि(cid:7334)यां) अिधिनयम, 1947 के अधीन अिधसूिचत स(cid:7021)ं थाए ं।”
[अिधसूचना स.ं75 /2016/फा.सं.370142/19/2016-टी पी एल]
पीता(cid:7013)बर दास, िनदशे क (कर नीित और िवधान)
4078 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(cid:7407)ट(cid:7009)पण : मलू िनयम भारत के राजप(cid:7074), असाधारण, भाग II, खंड-3, उपखंड (ii) म(cid:7286) अिधसचू ना सं(cid:6990)याकं का.आ. 969 (अ)
तारीख 26 माच,(cid:6981) 1962 (cid:7367)ारा (cid:7079)कािशत (cid:7408)कए गए थ े और आय-कर (बीसवा ं संशोधन) िनयम, 2016 ; अिधसूचना सं(cid:6990)याकं
का.आ. 2671(अ) तारीख 09.08.2016 (cid:7367)ारा उनका अंितम संशोधन (cid:7408)कया गया ।
MINISTRY OF FINANCE
o
(Department f Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 19th August, 2016
INCOME-TAX
S.O. 2747(E).— In exercise of the powers conferred by sub-section (1E) of section 206C read with section 295
of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to
amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (21st Amendment) Rules, 2016.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereafter referred to as the said rules), after rule 37CA and before 37D, the
following rule shall be inserted, namely:—
“Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply.
37CB. (1) The provisions of sub- section (1D) of section 206C in relation to sale of any goods (other than bullion or
jewellery) or providing any service shall not apply to the following class or classes of buyers , namely:—
(i) Government;
(ii) embassies, Consulates, High Commissions, Legation or Commission and trade representation, of a
foreign State;
(iii) institutions notified under United Nations (Privileges and Immunities) Act, 1947”.
[Notification No. 75/2016/F. No. 370142/19/2016-TPL]
PITAMBAR DAS, Director (Tax Policy and Legislation)
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide
notification number S.O.969(E), dated the 26th March, 1962 and last amended by the Income-tax (20th Amendment)
Rules, 2016, vide notification number S.O.2671 (E), dated the 09.08.2016(cid:32)(cid:46)
(cid:32)
(cid:32)
(cid:32)
(cid:32)
(cid:32)
(cid:32)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.