TCS on scrap sale

TCS

TCS would be appilicabe on the sale of scrap but there is exemption limit if following condition is satisfied

• No tax will be deducted from a buyer who purchases specified goods not for the purpose of trading but for the manufacturing,processing,or production of goods/article or thing.
• In this case Buyer gives a declaration, for above use, in duplicate in Form 27C to the seller.

If scrap is sold to trader than tds is applicable....

YES TCS SHALL BE APPLICABLE IF ITS SOLD TO TRADER, NO EXEMPTION FOR TRADER

Thanka Navin & Vijay.

Dear Navin

Branch is not purchasing any specialised items.The Items like mixer,irons are transferred from manufacturing unit to branch under branch transfer and branch sells to the customer.

Defectives are customer returned material which branch sell as scrap .The contention of branch finance manager is that Sec.206(c) is not applicable to him as scrap is not generating out of manfacturing process and manufacturing process is already completed.

So is branch finance manager's contention correct ?

I am of the opinon is that TCS should be collected as branch is nothing but extended hand of manufacturing unit and defectives which are sold are dismentled totally and sold as scrap so that it cannot be used further.

Please suggest me the correct procedure.

Originally posted by : CA Navin Jain
	TCS TCS would be appilicabe on the sale of scrap but there is exemption limit if following condition is satisfied   No tax will be deducted from a buyer who purchases specified goods not for the purpose of trading but for the manufacturing,processing,or production of goods/article or thing. In this case Buyer gives a declaration, for above use, in duplicate in Form 27C to the seller.

Thanks Mr.Nvain

yes, branch mamanger is right

HI

We are manufacturing of chemical products we are going to sale some waste plastic barral and other scraps to traders .

shall we charge any TCS? .  what is the limit ?. which department shall we make the payment either income tax or VAt dept  what are all the form shall we fill

Please healp me