Dear Members,
One of my client is a government contractor taking contract to demolish buildings, structures etc. The client demolishes the structure and sells the waste and scrap arising from it like tmt bars, stones, iron, steel, plastic etc to other dealers delaing in scrap material. The turnover of PY is around 3 crores.
1. Are this materials will come under the definition of scrap under section 206C of Income Taz Act.
2. Is the client liable to collect TCS on sale of such scrap under section 206C of Income Tax Act.
Please provide reference if possible
CAclubindia
