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Do we collect tcs on road side tree auctions amount ?

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Mushak Shareef

1 Points Posted on 19 November 2018

LITTLE BIT URGENT EXPERTS . . .

ROAD SIDE TREES ARE WASHEDOUT BY GAJA. HENCE THE TREES ARE GOING TO BE SOLD BY AUCTIONS. DO WE COLLECT TCS ON THE TREES AUCTION AMOUNT OR NOT.? IN PROVISION THERE IS ONLY FOR TIMBER OR FOREST PRODUCTS OTHER THAN TIMBER AND TENDU LEAFS . KINDLY PUT CLARITY, SHALL WE COLLECT TCS OR NOT ON THE AUCTION AMOUNT WHICH IS GOING TO BE RECEIVED BY NATIONAL HIGHWAYS DEPT?

Thanks in advance

Replies (1)

Aashok Kumar Sharma

Finance/Compliance Consultant

69118 Points Posted on 01 July 2026

Yes, TCS applies to the auction of roadside trees as they are considered forest produce/timber. The seller (the department auctioning the trees) is responsible for collecting the tax unless the buyer provides a valid declaration that the timber is for manufacturing/production use rather than for trading.