TCS U/s 206C(1H)

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This discussion clarifies whether the sale of scrap, such as TMT, structural steel, and cement bags, generated from construction sector civil work attracts TCS under Section 206C(1H). It confirms that if sales exceed Rs. 80 lakh and payments surpass Rs. 50 lakh in a financial year, TCS is indeed applicable, even if not previously deducted under scrap sale provisions.

DILIP KUMAR BARANWAL

DILIP KUMAR BARANWAL (Querist)

22 December 2020 Dear Madam/Sir

Whether sale of scrap (like TMT Scrap, Structural Steel Scrap, Cement Bag Scrap etc.) in construction sector attract TCS U/s 206C(1H) ?

Regards,
Dilip Baranwal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 December 2020 If TCS already deducted under scraps sale TCS under the section not applicable.

DILIP KUMAR BARANWAL

DILIP KUMAR BARANWAL (Querist)

22 December 2020 TCS were not deducted in earlier as scrap were created in civil work and not from manufacturing or mechanical work. Now as scrap generate in civil contract work, whether TCS will be applicable U/s 206C(1H) effective from 01.10.20. (Sales already exceed Rs.80 lakh and Payment received were more then 50 Lakh during F.Y. 2020-21)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 December 2020 In such a case TCS applicable under section 206C(1H).

DILIP KUMAR BARANWAL

DILIP KUMAR BARANWAL (Querist)

22 December 2020 Thank you so much sir

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