03 January 2015
One of the client is a trader in Iron Scrap. He Purchases Scrap on which TCS is done. He sells the same scrap to the end user i.e., the manufacturer. Is he required to file form 27D and collect tax at source??
03 January 2015
Considering the provisions of section 206(1A) of the Income Tax Act 1961, it can be said that where purchaser of the goods intends to use scrap for manufacturing he may provide a declaration to the seller in form 27C. In such case no TCS collection shall be required.
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