03 April 2012
Yes. TCS shall be collected by the seller only if the buyer intention is to trade in such scrap. However, if the buyer gives a declaration saying that scrap is for manufacture, etc., then TCS will not be collected. TCS shall be collected on amounts debited to buyer account. Hence it shall be collected on total amount including excise and VAT.
05 October 2016
If the buyer purchases the specified goods, not for the trading but using for the purpose of production of articles or goods, manufacturing, processing, then no tax will be deducted from that buyer. The tax is exempted if the buyer gives a declaration for above use, in duplicate in Form 27C to the seller. The tax is exempted if the seller shall deliver one copy of form 27C from the buyer to the Chief Commissioner/ Commissioner of Income Tax.