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The Central Board of Direct Taxes specifies an exemption for commission agents or traders operating under the Agriculture Produce Market Committee from tax deduction at source on cash withdrawals exceeding rupees one crore. The affected party must register under the State law relating to agriculture produce market. The affected party must intimate the account number and Permanent Account Number to the banking company, co-operative society, or post office. The affected party must certify that the cash withdrawal serves to make payments to farmers for the purchase of agriculture produce. The banking company, co-operative society, or post office must ensure that the Permanent Account Number is correct and the commission agent or trader holds registration with the Agriculture Produce Market Committee. The notification applies with effect from the first day of September, 2019.
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2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 20th September, 2019 (INCOME-TAX)
S.O. 3427(E).—In exercise of the powers conferred by clause (v) of the proviso to section 194N of the Income-tax Act, 1961 (43 of 1961), the Central Government after consultation with the Reserve Bank of India, hereby specifies the commission agent or trader, operating under Agriculture Produce Market Committee (APMC), and registered under any Law relating to Agriculture Produce Market of the concerned State, who has intimated to the banking company or co-operative society or post office his account number through which he wishes to withdraw cash in excess of rupees one crore in the previous year along with his Permanent Account Number (PAN) and the details of the previous year and has certified to the banking company or co-operative society or post office that the withdrawal of cash from the account in excess of rupees one crore during the previous year is for the purpose of making payments to the farmers on account of purchase of agriculture produce and the banking company or co-operative society or post office has ensured that the PAN quoted is correct and the commission agent or trader is registered with the APMC, and for this purpose necessary evidences have been collected and placed on record.
[Notification No. 70/2019/F. No. 370142/12/2019-TPL (Part-1)] SAURABH GUPTA, Under Secy. (Tax Policy & Legislation Division)
Explanatory Memorandum : It is certified that no person is being adversely affected by giving retrospective effect to this notification.
