TAX DEDUCTIONS AT SOURCE
This query is : Resolved
Dinesh Mittal
(Querist)
15 September 2007
Dear All
i m working with a retail sector company (pantaloon) and we are selling our scape at stores to contractors ,
i want to know is this transaction attracts the libality of TCS
if yes how and why ?
if No why ?
Pls quote case laws or section
Thx
Dinesh
i m working with a retail sector company (pantaloon) and we are selling our scape at stores to contractors ,
i want to know is this transaction attracts the libality of TCS
if yes how and why ?
if No why ?
Pls quote case laws or section
Thx
Dinesh
16 September 2007
Dear Sir
The term Scrap has been explained in explantion to Sec 206 C of the Income Tax Act 1961.
It covers only the manufacturing scrap and nothing more.
From your version it appears that you carry out trading activity only (purchasing and selling) and no manufacturing activity carried out. If so, there comes no scrap out of manufacturing activity.
Hence (Income) Tax Collection at Source in respect of your shop's scrap does not arise.
The term Scrap has been explained in explantion to Sec 206 C of the Income Tax Act 1961.
It covers only the manufacturing scrap and nothing more.
From your version it appears that you carry out trading activity only (purchasing and selling) and no manufacturing activity carried out. If so, there comes no scrap out of manufacturing activity.
Hence (Income) Tax Collection at Source in respect of your shop's scrap does not arise.
Dinesh Mittal
(Querist)
18 September 2007
Thnx
CA. O.P. Agarwalla
(Expert)
19 November 2007
I agree with the reply
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