Applicability of REG 07 and TDS on metal scrap

Regulation 07 (TDS 2% on purchase of metal scrap) is applicable to manufacturers like you, who use metal scrap as raw material.

 As per the regulation, every manufacturer who purchases metal scrap is required to deduct TDS (Tax Deducted at Source) at the rate of 2% from the purchase amount.

 This is applicable if the manufacturer's turnover exceeds ₹10 crores in the previous financial year.

However, if you are a registered manufacturer and have a valid GST registration, you may be exempt from TDS under certain conditions: 

1. If you are a registered person (manufacturer) under GST and have a valid GSTIN. 

2. If the metal scrap is used as raw material for manufacturing goods.

3. If the value of the metal scrap purchased does not exceed ₹5 lakhs in a single transaction. 

To confirm your specific situation, consult a chartered accountant or tax expert who can assess your circumstances and provide personalized guidance. 

Additionally, you may want to review the relevant notifications and circulars issued by the tax authorities for further clarification. 

Here are some relevant notifications and circulars: - Notification No. 52/2018 - Central Tax dated 20.09.2018 - Circular No. 58/32/2018 - GST dated 04.09.2018 

sir, thank you for reply, Some where 2.5lac of single bill/contract mentioned , Can you please reply is the value changed from 2.5 lac to 5.00 lac recently by govt ?? thank you