The Ministry of Finance (MoF) on January 02, 2025, issued the notification regarding the deduction of tax by a person, being a buyer, in respect of purchase of goods from a Unit of International Financial Services Centre, being a seller.
The following conditions have been stated namely: -
• The seller shall –
o Furnish a statement-cum-declaration in the format prescribed to the buyer giving details of previous years relevant to the ten consecutive assessment years for which the seller opts for claiming deduction. Such statement-cum-declaration so furnished shall be verified in the manner specified, for each previous year relevant to the ten consecutive assessment years for which the seller opts for claiming deduction under sub-sections (1A) and (2) of section 80LA of the said Act
• The buyer shall –
o Not deduct tax on payment made or credited to the seller after the date of receipt of copy of the statement- cum-declaration in the said Form from the seller
o Furnish the particulars of all the payments made to the seller on which tax has not been deducted in pursuance of this notification in the statement of deduction of tax.
• The relaxation under this notification shall be available to the seller only during the said previous years relevant to the ten consecutive assessment years as declared by the seller in the said Form for which deduction under section 80LA of the said Act is being opted and the buyer shall be liable to deduct tax on payments made or credited for any other year.
This shall come into force on January 01, 2025
[Notification No. S.O. 21(E)]
