The Central Board of Direct Taxes, (CBDT), on January 06, 2025, issued a Notification on Tax Collection Exemption for IFSC Units under Section 206C of the Income-tax Act.
Clause (a) of the Explanation to sub-section (1H) of Section 206C of the Income-tax Act, 1961, specifies that International Financial Services Centre (IFSC) Units will not be deemed as buyers for tax collection purposes when purchasing goods, provided specific conditions are met. These include the buyer furnishing a verified statement in Form No. 1A declaring eligibility for deductions under Section 80LA for ten consecutive years and the seller adhering to reporting requirements. This relaxation applies exclusively during the declared ten-year period for IFSC Units as defined under the SEZ Act, 2005. The notification is effective from January 1, 2025.
[Notification No. S.O. 99(E)]
