TCS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 TAX COLLECTED AT SOURCE
As per section 206C tax is to be collected at source in case of lease for mining activity. In the case in question the liability to collect TCs is on the govt department which has given the lease. The lessee pays lease royalty to the govt. The TCS is collected by the concerned department at the time of royalty receipt and the same is deposited with the bank.
The responsibility to collect lies on the officer incharge of the department. However in many cases it was not collected by the office. Amounting to violation of the act and liable to penalty and interest.
The TCS not collected pertains to those of previous yrs. Namely 2006,2007, 2008 and so on.
LESSOR:GOVERNMENT
LESSEE: CONTRACTORS
Query:
1. Does the officer incharge is personally liable for the penalty and interest?
2. In 2010 the auditors pointed the matter. Now the office is collecting tcs for previous year also from the lessee.
Is the action correct and how it will have to be dealt with bcoz it relates to previous assessment years.
3. How will the certificate for tcs can be issued in 2011 for 2007.2008 so on.
4. How will this tcs be dealt by the lessee. How can they file for the refund if for the previous year for which assessment have been completed?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 January 2011 1. OIC is not personaly liable for this.
2. See they are in default, whether they collect or not they have to pay the tax.
3. Certicate cannot be issued for previous period, since amount is being deposited in current year.
4.They will get the refund in current year.