The 60-second version
Section 206CO requires liquor licensee to collect TCS on sale of alcoholic liquor for human consumption — returning NRIs with state excise licenses must file Form 27EQ.
206CO is liquor TCS — state excise permit and TAN must both stay active
Section 206CO applies when licensee sells alcoholic liquor for human consumption — collect TCS at notified rate on each wholesale/retail sale above threshold.
Returning NRIs taking over family liquor license must register TAN, collect buyer PAN, and file quarterly Form 27EQ alongside state excise returns.
Jewellery lane: Section 206CN guide for bullion TCS.
Liquor TCS matrix
| Sale type | Section | Collector | Form |
|---|---|---|---|
| Retail liquor | 206CO | Licensee | 27EQ |
| Wholesale | 206CO | Distributor | 27EQ |
| Non-filer buyer | 206CCA | Higher rate | PAN check |
| Excise | State law | Separate | State return |
206CO compliance
Excise license
Valid permit.
Buyer PAN
For bulk buyers.
Collect TCS
Check 206CCA.
File 27EQ
Quarterly.
Excise return
State portal.
Flow
206CO kit
- TAN.
- Excise license.
- Buyer PAN.
- 27EQ.
- Stock register.
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State excise
TCS compliance does not replace state excise duty — file both on separate calendars.
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206CO vs GST?
Liquor is outside GST in most states — excise + TCS apply separately.
206CCA?
Higher TCS if buyer failed prior ITR.
Retail walk-in?
PAN may not be required for small retail — verify threshold with CA.
RNOR?
Collection obligation applies if you hold active liquor license.
Penalty?
Section 206CA if TCS not collected.
Restaurant?
On-premise service may fall under different TCS/TDS rules — verify license class.
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