Apart from the bullion and jewelry , Finance Bill 2012 ( Budget 2012-13 ) has proposed to impose the tax at source (TCS ) provision under Income Tax Act on coal, lignite and iron ore trade . This is done by inserting amendment in section 206C of the Income Tax Act . This budget 2012-13 proposal is going to give a tool to the government to monitor the mineral trades in country which in recent past have seen many scams.
Exception to TCS on Minerals
The exception provided in the proposed Finance Bill 2012-13 amendment is that the TCS will not be applicable in certain circumstances like minerals are purchased by the buyer for personal consumption.
Budget 2012-13 also provides that TCS provision shall not be applicable if the buyer declares that these minerals are to be utilized for the purposes of manufacturing, processing or producing articles or things.