# Section 206CC: Consequence of Not Furnishing PAN to Collector
## What it Mandates
When the collectee fails to furnish PAN to the collector, TCS must be collected at the higher of:
1. Twice the rate specified in the relevant provision of the Act, OR
2. 5%
## Cap
The maximum rate of TCS under this section shall NOT exceed 20%.
## Non-applicability
Section 206CC does NOT apply to a non-resident who does not have a PE in India.
### Example 1
Example: A scrap buyer doesn't furnish PAN. Normal TCS rate = 1%.
- Higher of: 2 × 1% = 2% vs. 5% = 5% → TCS at 5%.
### Example 2
Example: Tendu leaves buyer without PAN. Normal rate = 5%.
- Higher of: 2 × 5% = 10% vs. 5% = 10% → TCS at 10%.
### Example 3
Example: Overseas tour buyer remits ₹50L without PAN. Normal rate would be 20% on excess.
- Higher of: 2 × 20% = 40% vs. 5% = 40%; BUT capped at 20%.
### Example 4
Example: Non-resident with no PE in India remits funds via LRS but doesn't provide PAN.
- Section 206CC NOT applicable → normal rate continues.