Our Client is chemical manufacturing company.They purchase chemical which pack into Drums.Such Drums are sale by company.My Query is weather company has to collect TCS from the Purchaser of such Drums.As Act say about TCS is that Scrap generated from manufactruing activity & Drums are not part of same.so pls help me.
Scrap means waster materials and drums don’t comes under scrap.
Definition of Scrap U/s.206C:
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.
so scrap does not include drums and therefore no tcs provisions applicable.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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