Tcs on empty drum

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Dharmesh Lad (Querist)
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28 December 2011 Is it tax collectble on scrap of Empty Drum ?

Glass manufacturing company generate scrap of glass . is it tcs collectable ?

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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28 December 2011 As per explanation given in section 206C, Scrap means waste & scrap from the MANUFACTURE OR MECHANICAL WORKING of material which is definitely usable.
Thus sale of empty drum is not liable to TCS but scrap of glass would be liable for TCS

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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28 December 2011 TCS is to be collected if scrap is sold.

206C. (1) Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:

The only exemption from TCS is provided in cases where scrap is sold to a buyer who is end user of such scrap for any manufacturing process and for such exemption the buyer has to provide a declaration in prescribed format as per sub-section (1A) of section 206C.

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