The 60-second version
Section 206CS requires mineral seller to collect TCS on sale consideration for minerals other than coal/lignite/iron ore — returning NRIs operating bauxite or manganese wholesale must file Form 27EQ quarterly.
206CS covers other minerals — coal/lignite/iron ore stay under 206CM
Section 206CS applies when you sell minerals for consideration — excludes coal, lignite, and iron ore which fall under Section 206CM.
Returning NRIs operating bauxite, manganese, or limestone wholesale need TAN and Form 27EQ before first quarter ends.
Coal lane: Section 206CM guide for coal/lignite/iron ore TCS.
206CS matrix
| Mineral | Section | Form |
|---|---|---|
| Bauxite | 206CS | 27EQ |
| Manganese | 206CS | 27EQ |
| Coal | 206CM | 27EQ |
| Iron ore | 206CM | 27EQ |
Compliance
TAN
Apply if new seller.
Buyer PAN
Collect each sale.
Collect TCS
206CS or 206CCA.
File 27EQ
Quarterly.
Mining lease
If applicable.
Flow
206CS kit
- TAN.
- Mining lease.
- Buyer PAN.
- 27EQ.
- Weighbridge slip.
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Lease vs sale
Mining lease grant may fall under Section 206CH — verify transaction is outright mineral sale before applying 206CS.
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vs 206CM?
206CM covers coal, lignite, iron ore; 206CS covers other minerals.
vs 206CH?
206CH covers mine/quarry lease grant; 206CS covers mineral outright sale.
206CCA?
Higher TCS if buyer failed prior ITR filing.
State royalty?
Mining royalty separate from income-tax TCS obligation.
Penalty?
Section 206CA if collection or 27EQ filing missed.
GST?
GST on mineral supply filed separately from Form 27EQ.
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