Urgent plz reply

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 a party buyback Desktop as scrap and raise bill as

hp desktop Basic Rs 10000
Vat 1400
Total 11400

now on which amount to deduct tcs @ 1%
at 10000
or
at 11400

Please tell with relevant provision

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 October 2014 TCS required to be deducted on sale of scrap only if the scrap is generated out of manufacturing activity. So TCS is not applicable in the given case.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 Thank Sir

But in this case these computer items are scrap so I think TCS will be applicable

Party A purchase desktop from Party B
and buyback/sell desktop (not usable) as scrap to the same party B.

whether TCS applicable?
Whether TCS deducted on amount inclusive of VAT?

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 October 2014 No TCS will not be applicable since the scrap is not generated out of a manufacturing activity. Advisable to take view of other experts as well in case you have a doubt.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 Sir as per Sec 206 Scrap:means waste and scrap from the manufacture or mechanical working of material which is definitely not usable as such because of breakage ,cutting up,wear and other reasons.

Whether this case come under Meaning Of Scrap?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 October 2014 I think it is not coming under scrap. Still you need to check whether it will fall under meaning of scrap. I think it will not.