Tcs applicability

This query is : Resolved

lalit Ganesh Koshe (Querist)
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28 September 2013 Manufacturer send his material for job processing for Rs. 100.
Processing cost 65
Inspection 10
Process scrap 10
Profit 15
Total 100

So here scrap is taken over by job vendor and scrap price Rs 1o is reduced from final price.
This means product price is inclusive of scrap price.

So whether it can be trated as deemed sale of scrap and TCS has to be paid?
please suggest

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 one branch give loan to others branch ,branch will charge interst on that loan according to company act and income tax

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 September 2013 regarding your query on loan from one branch to another. You may charge interest. but at the time of finalization of accounts, the interest expense of one branch shall be nullified by the interest income of the other branch leaving no impact on tax or company account p&l.

the benefit of charging interest though is that a proper calculation regarding profitability of individual branches can be done.

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