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NEW DELHI, June 16

THE Finance Ministry has postponed the date of implementation of the latest amendments to the existing scheme on collection of tax at source from dealers in country liquor and scrap.

The amendments brought about by Finance Act 2003 in respect of tax collection at source on country liquor and scrap would now be effective from September 1, 2003 as against the earlier set date of June 1, 2003.

An official release said that the move follows representations from various quarters including State Government authorities in the matter of various consequences flowing from the amendments.

Section 206C of the Income-tax Act provides for collection of tax at source from dealers of country liquor by the manufacturer/distiller at the time of purchase by the dealers and deposit of the same to the credit of Central Government. The scheme which came into effect vide Finance Act, 1988, however, excluded from the purview of the scheme, the buyers who do not obtain goods by way of auction and where the sale price of such goods to be sold by the buyer is fixed by or under any State Act.

The Finance Act, 2003, however, removed the above condition from section 206C and made it applicable irrespective of whether the buyer obtained the goods by way of auction or the sale price of such goods were fixed under the State Act. Further, while the scheme was applicable to buyers at the first point of sale from manufacturers/distillers, Finance Act, 2003 made it applicable to all buyers, except the consumer. It also extended the scheme of tax collection at source to dealers of scrap.

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