The 60-second version
Section 206CQ requires tobacco product seller to collect TCS on sale consideration — returning NRIs operating wholesale tobacco distribution must file Form 27EQ quarterly.
206CQ covers tobacco products — tendu leaves stay under 206CI
Section 206CQ applies when you sell tobacco products for consideration — excludes tendu leaves which fall under Section 206CI.
Returning NRIs operating wholesale tobacco or cigarette distribution need TAN and Form 27EQ before first quarter ends.
Tendu lane: Section 206CI guide for forest tendu leaf TCS.
206CQ matrix
| Product | Section | Form |
|---|---|---|
| Cigarettes | 206CQ | 27EQ |
| Chewing tobacco | 206CQ | 27EQ |
| Tendu leaves | 206CI | 27EQ |
| Pan masala | 206CP | 27EQ |
Compliance
TAN
Apply if new seller.
Buyer PAN
Collect each sale.
Collect TCS
206CQ or 206CCA.
File 27EQ
Quarterly.
Excise cert
If state requires.
Flow
206CQ kit
- TAN.
- Excise licence.
- Buyer PAN.
- 27EQ.
- State GST.
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Tendu exclusion
206CQ explicitly excludes tendu leaves — mis-classification triggers wrong TCS rate and 206CA penalty risk.
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Turn this guide into a decision file
0 of 4 checked
vs 206CI?
206CI covers tendu leaves; 206CQ covers other tobacco products.
vs 206CP?
206CP covers pan masala; 206CQ covers tobacco products.
206CCA?
Higher TCS if buyer failed prior ITR filing.
Excise?
State excise licence separate from income-tax TCS obligation.
Penalty?
Section 206CA if collection or 27EQ filing missed.
GST?
GST on tobacco supply filed separately from Form 27EQ.
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