Query regarding metal scrap purchase from SEZ
This query is : Resolved
21 November 2025
If we purchase metal scrap of value above 2,50,000 rupees , then TDS @2% will be deducted by Purchaser as per the rule.
But What if we Purchase Metal Scrap from SEZ supplier , whether TDS would be applicable ?(i.e. whether there is liability of purchaser to deduct tds @2%??
Another Question is....
Whether there is change in applicability of TDS on Purchase of metl=al scrap from SEZ unit in case of Inter-state supply and Intra-State supply ?
and Whether the below-mentioned conclusion is true or not ?
1. If the SEZ unit and place of supply align such that the proviso is not triggered, TDS will apply (based on value > ₹2.5 lakh).
2. If the proviso is triggered (supplier location + place of supply both differ from buyer’s registration state), then TDS may not apply.
3. If there’s any uncertainty, please consult a GST expert / CA, because this issue can have significant tax-cash implications.
But What if we Purchase Metal Scrap from SEZ supplier , whether TDS would be applicable ?(i.e. whether there is liability of purchaser to deduct tds @2%??
Another Question is....
Whether there is change in applicability of TDS on Purchase of metl=al scrap from SEZ unit in case of Inter-state supply and Intra-State supply ?
and Whether the below-mentioned conclusion is true or not ?
1. If the SEZ unit and place of supply align such that the proviso is not triggered, TDS will apply (based on value > ₹2.5 lakh).
2. If the proviso is triggered (supplier location + place of supply both differ from buyer’s registration state), then TDS may not apply.
3. If there’s any uncertainty, please consult a GST expert / CA, because this issue can have significant tax-cash implications.
25 November 2025
TDS @2% Applicable on you, and TCS on the sale of scrap applicable on the seller.
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