TAX DEDUCTIONS AT SOURCE

This query is : Resolved

Dinesh Mittal (Querist)
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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

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
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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.

Dinesh Mittal

Dinesh Mittal (Querist)
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18 September 2007 Thnx