The 60-second version
Section 206CM requires seller of specified minerals (coal, lignite, iron ore) to collect TCS — returning NRIs with mining or trading licenses must file Form 27EQ and issue TCS certificate.
206CM is outright mineral sale TCS — 206CH covers lease; both need active TAN
Section 206CM applies when seller receives sale consideration for coal, lignite, or iron ore — collect TCS at notified rate and deposit via challan.
Returning NRIs operating mineral trading after family business succession must obtain buyer PAN and check 206CCA for higher rate on non-filer buyers.
Lease lane: Section 206CH guide for quarry lease grants.
Mineral TCS matrix
| Mineral | Section | Collector | Form |
|---|---|---|---|
| Coal | 206CM | Seller | 27EQ |
| Lignite | 206CM | Seller | 27EQ |
| Iron ore | 206CM | Seller | 27EQ |
| Lease royalty | 206CH | Lessor | 27EQ |
206CM compliance
Sale invoice
Mineral quantity + rate.
Buyer PAN
Mandatory collect.
Collect TCS
Check 206CCA.
File 27EQ
Quarterly.
E-way / GST
Align dispatch docs.
Flow
206CM kit
- TAN.
- Buyer PAN.
- Weighbridge slip.
- 27EQ.
- Mining transit permit.
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Buyer 206CCA
Specified non-filer buyer triggers higher TCS under 206CCA — do not rely on base 206CM rate alone.
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206CM vs 206CH?
206CM is sale of minerals; 206CH is lease/license for mining or quarrying.
206CCA?
Higher TCS if buyer failed prior ITR — see 206CCA guide.
GST?
Mineral dispatch may need e-way bill — TCS is separate from GST.
vs 194C?
194C is contractor TDS on transport/mining contracts; 206CM is seller TCS on mineral sale.
RNOR?
TCS collection applies if you are notified seller under 206CM.
Penalty?
Section 206CA if collection missed — see 206CA guide.
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