Dear Professionals ,
We have the following issue confronting us on which we require your urgent advice :
Some of the salvaged Final product components are proposed to be sold by our organisation via tendering. It is anticipated that some of the foreign vendors may also bid for the said items. In such an eventuality we have the following querries with regard to applicability of TCS :
1. Whether the said sale of salvaged Final product components as Scrap to a foreign vendor will attract TCS under Income Tax act,1961 ?
2. If the said transaction attracts TCS what will be the rate of TCS to be applied considering the fact that the said vendor may not have any permanent estabishment in India and may not be able to provide the Permanent Account Number ?
3. If not under TCS, whether the said transaction will get attracted under any other provision of TDS under the Income Tax Act, 1961. ?
Your early reply in this regard will be highly appreciated on my part.
Thinking You,
CMA. PRALAY CHAKRABORTY
(Cost & Management Accountant)
CAclubindia
