The 60-second version
Section 206CH requires lessor of mine or quarry to collect TCS on lease consideration — returning NRIs with mineral rights must file Form 27EQ and reconcile with 206CCA.
206CH is lease TCS — distinct from 194-I rent TDS and 206CM mineral sale TCS
Section 206CH applies when lessor receives consideration for grant of lease or license for mining or quarrying — collect TCS at notified rate.
Returning NRIs leasing family quarry or inherited mineral plot must obtain lessee PAN, deposit TCS, and file quarterly Form 27EQ.
Mineral sale lane: Section 206CM guide for outright coal/lignite/iron ore sales.
Mining tax collection matrix
| Section | Trigger | Role | Form |
|---|---|---|---|
| 206CH | Mine/quarry lease | Lessor collects | 27EQ |
| 206CM | Mineral sale | Seller collects | 27EQ |
| 194-I | Rent | Tenant deducts | 26Q |
| 206CCA | Non-filer lessee | Higher TCS | Check PAN |
206CH compliance
Lease deed
Registered agreement.
Lessee PAN
Mandatory collect.
Collect TCS
Check 206CCA rate.
File 27EQ
Quarterly statement.
TCS cert
Issue to lessee.
Flow
206CH kit
- TAN active.
- Lessee PAN.
- Lease invoice.
- 27EQ filed.
- State mining permit.
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State permit
TCS compliance does not replace state mining lease or environmental clearance — keep both files separate.
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206CH vs 194-I?
194-I is rent TDS on immovable property; 206CH is TCS on mining/quarry lease consideration.
206CM?
206CM covers sale of coal/lignite/iron ore — see 206CM guide.
206CCA?
20% TCS if lessee is specified non-filer — see 206CCA guide.
RNOR?
Collection obligation applies if you are liable collector under 206CH.
GST?
Mining services may attract GST separately — TCS is on consideration excluding GST if charged separately.
Penalty?
Section 206CA if TCS not collected — see 206CA guide.
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