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With repeated reports of Paintings of Hussain, Tyeb
Mehta and others selling for crores, the income tax
department now wants a share of the pie. The income
tax department is considering a Tax Collection at Source
(TCS) levy on Art sales.
The objective of the tax is to introduce greater transparency
into the art industry which is still very unorganised.
This information can be used as a benchmark for issues
relating to pricing, insurance and value. As of now
all sales at high profile auctions get recorded. Most
galleries also record sales. Yet, private deals struck
by art collectors, painters and dealers do not get recorded.
Last year, the TCS net carrying a 2 % tax rate was
extended to cover parking lots, toll plazas and mining.
In case of art sales, the TCS rate may be as high as
30%, but a final decision has yet to be taken by the
finance ministry sources said.
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