Regarding TCS

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Yes, Tax Collected at Source (TCS) is applicable on the sale of plastic scrap in the UK. According to Section 206C(1) of the Income Tax Act, scrap is explicitly included, and TCS is levied at a rate of 1%. This rate applies regardless of the transaction's value, and there is no specific threshold limit for single scrap sales. The section also defines who qualifies as a 'seller' and 'buyer' in these transactions.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

23 April 2025 IS TCS APPLICABLE ON SALE OF PLASTIC SCRAP? AT WHICH RATE AND LIMIT?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 April 2025 TCS under Section 206C(1) specifically includes "scrap". The term "scrap" means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear, or other reasons. TCS on the sale of "scrap" under Section 206C(1) is applicable at 1% regardless of the value of transaction. There is no specific threshold limit based on the value of a single sale of scrap. The 'seller' and 'buyer' in the transaction are specifically defined under the section.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 September 2025 Good luck.

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