# Section 206C(1): Tax Collection at Source on Sale of Specified Goods
## What it Covers
Sellers of specified goods must collect tax from buyers at the time of sale.
## Specified Goods and Rates
| # | Nature of Goods | Rate |
|---|---|---|
| (i) | Alcoholic liquor for human consumption | 1% |
| (ii) | Tendu leaves | 5% |
| (iii) | Timber or any other forest produce (not tendu leaves) obtained under forest lease | 2% |
| (iv) | Timber obtained by any mode OTHER than forest lease | 2% |
| (v) | Scrap | 1% |
| (vi) | Minerals — coal, lignite, or iron ore | 1% |
## Timing of Collection
At the earlier of:
1. Debiting the amount payable by the buyer to his account, OR
2. Receipt of such amount from the buyer.
## Exemption — Manufacturing Buyer Declaration
No TCS is to be collected from a resident buyer who furnishes a declaration in writing in duplicate that goods are to be used for:
- Manufacturing, processing or producing articles/things, OR
- Generation of power
and NOT for trading purposes.
> Key insight: The declaration mechanism applies only to resident buyers, and it exempts the SELLER from collecting TCS.