Proviso to sec. 206C providing for immunity on TCS default in tax neutral situation has retro effect, rules SB

The first proviso to sec 206C(6A) introduced by the Finance Act, 2012 with effect from 1-7-2012 relieves the assessee from consequences of assessee-in-default for non-collection of TCS based on proof of “no loss to Revenue” in the form of a CA’s certificate certifying specified matters. As the said proviso seeks to rationalize TCS provisions and is also beneficial in nature in the sense that it seeks to provide relief to collectors of taxes from consequences of short collecting TCS after ensuring that Revenue’s interest is well-protected. Said proviso shall apply retrospectively even to pending matters also, though it is expressed to be applicable with effect from 1-7-2012 – Bharti Auto Products v.Commissioner of Income-tax -II, Rajkot (2013) 37 taxmann.com 37 (Rajkot - Trib.) (SB) Get Sudycafe's Updates by SMS in your mobile by Following below two Steps:  1. Download our SmartPhone Application &  2. Send a SMS, Type: JOIN CASTUDYCAFE & send to 9219592195

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