The Central Board of Direct Taxes in exercise of the powers conferred by sub-section (1E) of section 206C read with section 295 of the Income-tax Act, 1961, makes Income-tax (21st Amendment) Rules, 2016 in order to amend the Income-tax Rules, 1962. They shall come into force on the date of their publication in the Official Gazette.
In the Income-tax Rules, 1962, after rule 37CA and before 37D, the following rule shall be inserted, namely: — “Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply.
37CB. (1) The provisions of sub- section (1D) of section 206C in relation to sale of any goods (other than bullion or jewellery) or providing any service shall not apply to the following class or classes of buyers, namely: — (i) Government; (ii) embassies, Consulates, High Commissions, Legation or Commission and trade representation, of a foreign State; (iii) institutions notified under United Nations (Privileges and Immunities) Act, 1947”.
Ministry of Finance