Tax on sale of certain petroleum products Section 236HA
Tax on sale of certain petroleum products Section 236HA: As per section 156A, every person selling petroleum products to a petrol pump operator is required to deduct tax from the commission or discount allowed to the operator at the rate of 12% of the amount of payment for filers and 17.5% for non-filers.
Through the Finance Act, 2018, a new section 236HA has been inserted which states that every person selling products to a petrol pump operator or distributor, where such operator or distributor is not allowed a commission or discount, shall collect tax on ex-depot sale price of such products @ 0.5% for filers and 1% for non-filers.
Hence, where the petrol pump operator is allowed a commission or discount, only tax under section 156A shall be collected and tax under section 236HA shall not be collected.
In case the petrol pump operator or distributor is not allowed commission or discount, tax under section 156A shall not be collected but tax under section 236HA shall be collected.
Tax deducted under the newly inserted section is a final tax.