This discussion clarifies whether Tax Collected at Source (TCS) applies to scrap dealers trading scrap. While the law states TCS is applicable for trading purposes at 1%, there's confusion regarding whether scrap must originate from a manufacturing process. Case law is divided, with some rulings favouring traders and others supporting the revenue. The applicability can depend on specific circumstances and may require higher authority clarification.
There is no basic exemption limit in case of TCS collected over scrap. If seller is liable to collect TCS (over scrap), it has to be collected from all the sells transactions without any basic limit.