TCS on sale of scrap
Anu K S (Cleared CA Final) (195 Points)
27 September 2017
If scrap is sold to a junkyard, is TCS applicable? Please advice.
RAJA P M
("Do the Right Thing...!!!")
(127167 Points)
Replied 27 September 2017
chamarthi venkatesh
(Student CA Articleship)
(848 Points)
Replied 27 September 2017
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.
chamarthi venkatesh
(Student CA Articleship)
(848 Points)
Replied 27 September 2017
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.
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