TCS on sale of scrap applicability
Sankar SM (10 Points)
23 March 2023Sankar SM (10 Points)
23 March 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(142163 Points)
Replied 23 March 2023
Yes, for your client having turnover of 3 Crs in preceding year, TCS collection is mandatory from the first bill itself. TCS rate on scrap is 1%. (refer Sec. 206C of IT act.)
Rakesh Ishi
(Working at Private Company)
(5884 Points)
Replied 23 March 2023
As per the provisions of the Income Tax Act, Tax Collected at Source (TCS) is applicable on the sale of scrap if the turnover of the seller exceeds Rs. 10 crore in the preceding financial year. If the turnover of the seller is less than Rs. 10 crore, then TCS is not applicable on the sale of scrap.
Therefore, if the yearly turnover from the sale of scrap is below Rs. 10 crore, TCS is not applicable on every sales bill. However, if the turnover exceeds Rs. 10 crore in the preceding financial year, TCS will be applicable on the sale of scrap.
The applicable TCS rate on the sale of scrap is 1%
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(142163 Points)
Replied 23 March 2023
The Explanation (c) to Section 206C defines ‘seller’ for the purposes of this Act, which includes-
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(142163 Points)
Replied 23 March 2023
The Explanation (c) to Section 206C defines ‘seller’ for the purposes of this Act, which includes-
ITR 1 and ITR 4
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