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Tcs not deducted

190 views 1 replies

Niraj Kumar Sinha

Sr. Officer SPSIL

648 Points Joined August 2012

Dear Sir,

we are manufacturer and some time we use to sale our purchased scrap. In the Financial year 2013-2014, we did not charge TCS on such sales. Now IT department is asking for the TCS. My question is that, is TCS chargeable on sale of purchased scrap. If yes then now what remedy we have.

Please answer me as soon as possible.

Replies (1)

Atul M

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729 Points Joined August 2009

Scrap is defined in IT Act as,

Scrap means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons

So, if the scrap is generated during manufacture or mechanical process, then TCS @ 1% is applicable.

If the scrap is generated because of any other activities like, household chores then TCS is not applicable.