Regarding Scrap

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This discussion clarifies the applicability of Tax Collected at Source (TCS) on the sale of scrap, including aluminium and heavy melting scrap, under Section 206C of the Income Tax Act. Experts confirm that TCS is applicable even if the seller is a trader and not a manufacturer. The standard TCS rate is 1%, regardless of whether the buyer has filed their Income Tax Return (ITR), provided the buyer's PAN is collected.

jignesh sitapara

jignesh sitapara (Querist)
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07 January 2024 Dear Experts,
My Client sale aluminum scrap, heavy melting scrap etc.... In this case any liability TCS on these scrap ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2024 Section 206C of the Income Tax Act, 1961 covers goods on which sellers must collect TCS (Tax Collected at Source) from their purchaser. However, it is only applicable for specified goods. It includes scrap.

jignesh sitapara

jignesh sitapara (Querist)
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07 January 2024 Sir, It's covered under specified goods. And my client is only trader. No any activity in manufacturing. Then ?