At what price tax collection at source should be charge

This query is : Resolved

CASunil Bhausaheb Kothule (Querist)
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28 November 2012 Dear Friends

At what price Tax Collection at source should be charge on scrap (means including or Excluding of VAT)as per Income Tax Act?

Please suggest answer with supporting.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 November 2012 TCS will be levied on the amount inclusive of taxes (VAT/CST).

This is so because Section 206C provides that TCS shall be computed on the amount payable by the buyer to the seller.

The amount payable by the buyer to the seller includes the amount of taxes.

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