Tcs on affregates mining
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 November 2013
Dear Sir,
Our transaction as under.
"A" is mining owner, we are providing all mining services and transportation of stone up to crush plant.
The operation and manitance of crusher done by us and after crushing of stone we sale crushed material to"A"
As above A is issued bill for sale aggregates material to us.
After crushing we will sale crushed material to A
Now please confirm the TCS is applicable on stone mining if yes whom will pay A or us.
Pl. clear the issue.
Thanks & Regards,
L.D.Dharmadhikari
Nagpur.
Dear Sir,
Our transaction as under.
"A" is mining owner, we are providing all mining services and transportation of stone up to crush plant.
The operation and manitance of crusher done by us and after crushing of stone we sale crushed material to"A"
As above A is issued bill for sale aggregates material to us.
After crushing we will sale crushed material to A
Now please confirm the TCS is applicable on stone mining if yes whom will pay A or us.
Pl. clear the issue.
Thanks & Regards,
L.D.Dharmadhikari
Nagpur.
22 November 2013
TCS provision covers mining and quarrying (other than mining & quarrying of mineral oil) and the TCS rate is 2%.
As per Section 206C(1C), every person who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest in a mine or a quarry to another person, other than a public sector company, for the use of such mine or quarry for the purpose of business shall be responsible for collection of tax at source.
Therefore in your case "A" should collect TCS from you. You are not required to collect TCS on your sale of crushed material to "A"
As per Section 206C(1C), every person who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest in a mine or a quarry to another person, other than a public sector company, for the use of such mine or quarry for the purpose of business shall be responsible for collection of tax at source.
Therefore in your case "A" should collect TCS from you. You are not required to collect TCS on your sale of crushed material to "A"
Dhirajlal Rambhia
(Expert)
14 August 2023
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