Hi,
I want to know that is there any limit mentioned under the Income Tax Act for deducting TCS on sale of Scrap.
Suppose A firm sold a scrap of empty boxes which is used for packing to a waste purchaser(Kabadia).
Now i want to know whether there is any liability on the part of the company to deduct TCS out of Sale proceeds.The company/Firm which i am taking about manufacture cloth from yarn & there is no Excise Duty applicable on that Firm/Company.
Sale of Scrap is about 40000-50000 per year.
Kindly Help
Thanks
Vishal
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TCS on Scrap
Replies (2)
According to 206C TDS has to be deducted at 1% for scrap.
But when it used in the process of manufacture and not for trading then collection of tax is exempted.
In the above case it used for packing i.e., used in the process of manufacturing. So TCS not applicable.
satyanarayan is correct
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