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TCS on sale of packing scrap

rajender (sr. executive a/c finance) (29 Points)

19 December 2011

I am working in steel processing co. When steel coil are come for processing after processing steel coil packing remain at our end. When we sale this packing scrap . Does it compulsary we charge Tsc from coustomer if it applicable then what is percentage?. if any amount limit also tell.

W Regard.

Rajender

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7 Replies

CA Ketan Waghela (Partner at Elite Educare) (356 Points)
Replied 19 December 2011

Rajender ji,

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.

TCS is the amount that is collected over and above the amount agreed upon in case of some transactions. TCS responsibility is on the person who is the seller.

In your case TCS will be collected on scrap @ 1%.

Members please correct me if I’m wrong.

1 Like

Hemant Kumar (Accounts Manager MBA (Fin) CMA*) (6450 Points)
Replied 19 December 2011

Agree with Ketan.

valji (Accounts manager-MBA) (2150 Points)
Replied 19 December 2011

agreee with mr ketan

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 19 December 2011

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.

TCS is the amount that is collected over and above the amount agreed upon in case of some transactions. TCS responsibility is on the person who is the seller.

In your case TCS will be collected on scrap @ 1%.

1 Like

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 19 December 2011

agree with all........

parag p chavda (article assistant) (24 Points)
Replied 30 January 2012

ya, there is requiremer of collection of TCS from customer to whom scrap are sold @ 1%.

K R K Rao (Chartered Accountants) (23 Points)
Replied 22 July 2020

The packing material is not part of waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage. Therefore in my opinion it doesn't amount to scrap for the purpose of TCS.