The 60-second version
Section 206CJ requires timber seller to collect TCS on sale consideration — returning NRIs operating sawmill or timber depot must file Form 27EQ and retain forest transit permits.
Timber TCS stacks with state forest transit rules — both calendars matter
Section 206CJ applies when you sell timber or other notified forest produce for consideration.
Returning NRIs restarting family sawmill need TAN, transit pass compliance, and Form 27EQ before first quarter ends.
Scrap lane: Section 206CG guide for metal scrap TCS.
206CJ matrix
| Product | Compliance | Form |
|---|---|---|
| Timber logs | Transit pass | 27EQ |
| Sawn timber | PAN + TCS | 27EQ |
| Non-filer buyer | 206CCA rate | 27EQ |
| State forest fine | Separate | Forest dept |
Compliance
Forest pass
State transit permit.
TAN
Apply if new depot.
Buyer PAN
Collect each sale.
Collect TCS
206CJ or 206CCA.
File 27EQ
Quarterly.
Flow
206CJ kit
- TAN.
- Transit pass.
- Buyer PAN.
- 27EQ.
- Stock register.
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State forest law
TCS compliance does not replace state forest transit permit — both must be current on sale date.
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206CJ vs GST?
Timber may be taxable under GST — TCS is separate income-tax collection.
206CCA?
Higher TCS if buyer failed prior ITR.
Imported timber?
Import customs docs do not replace 206CJ on domestic resale — verify with CA.
RNOR?
Collection obligation applies if you hold active timber dealer registration.
Penalty?
Section 206CA if TCS not collected.
Agri land?
Trees on own agricultural land may have different treatment — consult forest officer + CA.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.