Tcs is applicable for trading of scrape

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This query is : Resolved

irshad ahmed wani (Querist)

21 December 2014 Sir,

I have query about tcs a person has trading of business resale of scrape he can applicable for tcs Act regarding this matter cbdt issue any sro against this query tcs is applicable for manufacturing scrape or trading scrape give me the answer and second query is as a person resale of timber he is applicable for tcs deducting to consumers please give me the answer

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

21 December 2014 The explanation to section 206 C of the IT Act provides the meaning of scrap means “waste and scrap” from manufacture or mechanical working of material which is definitely not usable as such because of breakage, cutting up, wear and other reasons. In the above definition the important words used in the definition of scrap are “waste and scrap” – “from manufacture” and “which is”. The word “waste and scrap” are one item. Thereafter, the word used is “from” the manufacture or mechanical working of material. It would mean that the waste and scrap being one item should arise from the manufacture or mechanical working of material.

So TCS will not be applicable in case of trading of scrap.