Hi Team,
Being a hospital industry we generate scrap items mainly fixed assets. These scrap items are sold to scrap dealer and on pre fixed rate and the vendor will pay cash. My question here is Does this attract any tax and how we need to post these in books of accounts.
Yes, 1% tax needs to be collected at source (TCS) byyou (i.e. seller) from the buyer and pay to the govt.
Dear Memebr,
Income arising from selling of scarp is treated as indirect income and it needs to be collected @ 1% TCS (Tax Collected at Source) from your Scrap Dealer.
CAclubindia
