Section 12A: To Levy Tax on Transaction of Timber

1) Tax shall be levied and collected on the amount of royalty or the amount of auction of any timber of a national forest, whichever is higher, at the time of the receipt of the order for auction, release deed or order for sawing of such timber, whichever occurs earlier.

2) If any timber of a private cultivation, private forest or community forest is sold for commercial purpose, tax shall be levied on it in accordance with sub-section (1) as if it were a timber of a national forest, in spite of such a sale being free from royalty.