{"id":973,"date":"2025-06-17T13:33:53","date_gmt":"2025-06-17T08:03:53","guid":{"rendered":"https:\/\/www.caclubindia.com\/guide\/?p=973"},"modified":"2025-06-26T15:54:29","modified_gmt":"2025-06-26T10:24:29","slug":"tcs-on-sale-of-scrap","status":"publish","type":"post","link":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/","title":{"rendered":"TCS on Sale of Scrap under 206C"},"content":{"rendered":"\n<p>TCS on the sale of scrap means that the seller collects tax from the buyer at the time of sale.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Overview_of_Section_206C\" >Overview of Section 206C<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#TCS_Rates_for_Certain_Goods\" >TCS Rates for Certain Goods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Non-applicability_of_TCS_us_206C1\" >Non-applicability of TCS u\/s 206C(1)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Terminologies\" >Terminologies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Buyer\" >Buyer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Seller\" >Seller<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Scrap\" >Scrap<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Consequences_of_late_filing_%E2%80%93_Section_271H\" >Consequences of late filing \u2013 Section 271H<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#Consequences_of_non-filing_%E2%80%93_Section_271H\" >Consequences of non-filing \u2013 Section 271H<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Section_206C\"><\/span>Overview of Section 206C<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TCS under Section 206C of the Income Tax Act of 1961 was introduced to ensure that sellers collect tax on selling certain goods. Section 206C(1) of the Income Tax Act covers products like liquor, tendu leaves, minerals, timber, scrap etc.<\/p>\n\n\n\n<p>The tax should be collected at the time of debiting of the amount payable by the buyer to his account or at the time of receipt of such amount from the buyer, whichever is earlier.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TCS_Rates_for_Certain_Goods\"><\/span>TCS Rates for Certain Goods<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>Alcoholic liquor for human consumption<\/td><td>1%<\/td><\/tr><tr><td>Tendu leaves<\/td><td>5%<\/td><\/tr><tr><td>Timber obtained under forest lease<\/td><td>2.5%<\/td><\/tr><tr><td>Timber obtained by any other mode<\/td><td>2.5%<\/td><\/tr><tr><td>Any other forest produce not being timber or tendu leaves<\/td><td>2.5%<\/td><\/tr><tr><td>Scrap<\/td><td>1%<\/td><\/tr><tr><td>Minerals, being coal or lignite or iron ore<\/td><td>1%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non-applicability_of_TCS_us_206C1\"><\/span>Non-applicability of TCS u\/s 206C(1)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No collection of tax shall be made under section 206C(1), in the case of a resident buyer, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that goods referred to in section 206C(1) are to be utilised for the purpose of manufacturing, processing or producing articles or things or for the purposes of generation of power and not for trading purposes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Terminologies\"><\/span>Terminologies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buyer\"><\/span>Buyer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A person who obtains in any sale, by way of auction, tender, or any other mode, goods of the nature specified in the Table in point (1) or the right to receive any such goods but does not include &#8211;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A public sector company, the Central Government, a State Government and an embassy, a high commission, legation, commission, consulate and the trade representation, of a foreign state and a club, or<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A buyer in the retail sale of such goods purchased by him for personal consumption<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Seller\"><\/span>Seller<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Central Government<\/li>\n\n\n\n<li>State Government<\/li>\n\n\n\n<li>Any Local Authority<\/li>\n\n\n\n<li>Corporation<\/li>\n\n\n\n<li>Any Company<\/li>\n\n\n\n<li>Firm<\/li>\n\n\n\n<li>Co-operative society<\/li>\n<\/ul>\n\n\n\n<p>Seller also includes an individual or a HUF whose total sales, gross receipts or turnover from the business or profession carried on by him exceed Rs. 1 crore in case of business and Rs. 50 lakhs in case of profession during the financial year immediately preceding the year in which the goods of the nature specified are sold<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scrap\"><\/span>Scrap<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons.<\/p>\n\n\n\n<p>The Indian Government requires a seller to provide a <strong><a href=\"https:\/\/www.caclubindia.com\/articles\/tax-collected-source-51444.asp\">TCS<\/a><\/strong> certificate to the buyer of goods using the form 27EQ which contains information such as the Name of the buyer and seller, PAN details of the buyer and seller, TAN of the buyer and seller, Rate of applicable TCS and Date of collection of TCS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_of_late_filing_%E2%80%93_Section_271H\"><\/span>Consequences of late filing \u2013 Section 271H<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a person fails to file the TCS return by the due date, a fee of Rs. 200 will be charged for each day during which the failure continues. However, the total late fee cannot exceed the amount of the TCS due.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_of_non-filing_%E2%80%93_Section_271H\"><\/span>Consequences of non-filing \u2013 Section 271H<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a person fails to file the TCS returns, they may face a penalty ranging from Rs 10,000 to Rs 100,000. This penalty is in addition to the applicable late filing fees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1731388855022\"><strong class=\"schema-faq-question\">Is GST inclusive while calculating TCS?<\/strong> <p class=\"schema-faq-answer\">The tax should be collected at the time of debiting of the amount payable by the buyer to his account or at the time of receipt of such amount from the buyer, whichever is earlier. Hence, TCS should be collected inclusive of GST.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1731388892217\"><strong class=\"schema-faq-question\">What is the rate of TCS on the sale of scrap?<\/strong> <p class=\"schema-faq-answer\">The rate of TCS under 206C on the sale of scrap is 1%.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1731388908471\"><strong class=\"schema-faq-question\">Are there any exemptions from penalties?<\/strong> <p class=\"schema-faq-answer\">A taxpayer can avoid penalties under section 271H in case the delay was due to a reasonable cause or the TCS amount was credited to the government on time.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1731388917758\"><strong class=\"schema-faq-question\">Is TCS applicable if the scrap is not generated from manufacturing or mechanical work?<\/strong> <p class=\"schema-faq-answer\">TCS may not be applicable if the item sold as scrap is not generated from manufacturing or mechanical work.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1731388974854\"><strong class=\"schema-faq-question\">Is TCS refundable?<\/strong> <p class=\"schema-faq-answer\">Yes, TCS can be refunded if the TCS paid exceeds actual tax liability. One can claim the refund by filing the Income Tax Return (ITR).<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1731388991507\"><strong class=\"schema-faq-question\">How and where to check the details of TCS credit?<\/strong> <p class=\"schema-faq-answer\">Form 26AS displays the details of Tax Collected at Source (TCS) made by the seller. It will display the seller\u2019s details such as PAN, name, gross amount, section and tax amount.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>TCS on the sale of scrap means that the seller collects tax from the buyer at the time of sale. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":974,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>TCS on Sale of Scrap under 206C - Tax Guide<\/title>\r\n<meta name=\"description\" content=\"TCS on Sale of Scrap - TCS is collected by the seller when selling scrap materials which is then paid to the government.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"TCS on Sale of Scrap under 206C - Tax Guide\" \/>\r\n<meta property=\"og:description\" content=\"TCS on Sale of Scrap - TCS is collected by the seller when selling scrap materials which is then paid to the government.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Tax Guide\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/caclubindia\" \/>\r\n<meta property=\"article:published_time\" content=\"2025-06-17T08:03:53+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2025-06-26T10:24:29+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/11\/TCS-on-Sale-of-Scrap.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\r\n\t<meta property=\"og:image:height\" content=\"630\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"Chaitra Seetharam\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@caclubindia\" \/>\r\n<meta name=\"twitter:site\" content=\"@caclubindia\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Chaitra Seetharam\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/\"},\"author\":{\"name\":\"Chaitra Seetharam\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/person\\\/abe1f226c9415785edf10b4313c9cacb\"},\"headline\":\"TCS on Sale of Scrap under 206C\",\"datePublished\":\"2025-06-17T08:03:53+00:00\",\"dateModified\":\"2025-06-26T10:24:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/\"},\"wordCount\":768,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/TCS-on-Sale-of-Scrap.jpg\",\"articleSection\":[\"Income Tax\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/\",\"name\":\"TCS on Sale of Scrap under 206C - Tax Guide\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/TCS-on-Sale-of-Scrap.jpg\",\"datePublished\":\"2025-06-17T08:03:53+00:00\",\"dateModified\":\"2025-06-26T10:24:29+00:00\",\"description\":\"TCS on Sale of Scrap - TCS is collected by the seller when selling scrap materials which is then paid to the government.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388855022\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388892217\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388908471\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388917758\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388974854\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388991507\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/TCS-on-Sale-of-Scrap.jpg\",\"contentUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/TCS-on-Sale-of-Scrap.jpg\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"TCS on Sale of Scrap under 206C\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#website\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\",\"name\":\"Tax Guide\",\"description\":\"All tax related info news and updates in one place.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\",\"name\":\"CAclubindia\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cropped-icon-384x384-1.png\",\"contentUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cropped-icon-384x384-1.png\",\"width\":512,\"height\":512,\"caption\":\"CAclubindia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/caclubindia\",\"https:\\\/\\\/x.com\\\/caclubindia\",\"https:\\\/\\\/www.instagram.com\\\/caclubindia\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/caclubindia\\\/\",\"https:\\\/\\\/www.youtube.com\\\/caclubindia?sub_confirmation=1\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/person\\\/abe1f226c9415785edf10b4313c9cacb\",\"name\":\"Chaitra Seetharam\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/78b5101dc51a6bdf622917fe10dddf6a0eeb09d7280a1bc4eee34515a53d5a85?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/78b5101dc51a6bdf622917fe10dddf6a0eeb09d7280a1bc4eee34515a53d5a85?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/78b5101dc51a6bdf622917fe10dddf6a0eeb09d7280a1bc4eee34515a53d5a85?s=96&d=mm&r=g\",\"caption\":\"Chaitra Seetharam\"},\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/author\\\/chaitra-s\\\/\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388855022\",\"position\":1,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388855022\",\"name\":\"Is GST inclusive while calculating TCS?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The tax should be collected at the time of debiting of the amount payable by the buyer to his account or at the time of receipt of such amount from the buyer, whichever is earlier. Hence, TCS should be collected inclusive of GST.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388892217\",\"position\":2,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388892217\",\"name\":\"What is the rate of TCS on the sale of scrap?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The rate of TCS under 206C on the sale of scrap is 1%.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388908471\",\"position\":3,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388908471\",\"name\":\"Are there any exemptions from penalties?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A taxpayer can avoid penalties under section 271H in case the delay was due to a reasonable cause or the TCS amount was credited to the government on time.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388917758\",\"position\":4,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388917758\",\"name\":\"Is TCS applicable if the scrap is not generated from manufacturing or mechanical work?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"TCS may not be applicable if the item sold as scrap is not generated from manufacturing or mechanical work.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388974854\",\"position\":5,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388974854\",\"name\":\"Is TCS refundable?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, TCS can be refunded if the TCS paid exceeds actual tax liability. One can claim the refund by filing the Income Tax Return (ITR).\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388991507\",\"position\":6,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/tcs-on-sale-of-scrap\\\/#faq-question-1731388991507\",\"name\":\"How and where to check the details of TCS credit?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Form 26AS displays the details of Tax Collected at Source (TCS) made by the seller. It will display the seller\u2019s details such as PAN, name, gross amount, section and tax amount.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"TCS on Sale of Scrap under 206C - Tax Guide","description":"TCS on Sale of Scrap - TCS is collected by the seller when selling scrap materials which is then paid to the government.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/","og_locale":"en_US","og_type":"article","og_title":"TCS on Sale of Scrap under 206C - Tax Guide","og_description":"TCS on Sale of Scrap - TCS is collected by the seller when selling scrap materials which is then paid to the government.","og_url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/","og_site_name":"Tax Guide","article_publisher":"https:\/\/www.facebook.com\/caclubindia","article_published_time":"2025-06-17T08:03:53+00:00","article_modified_time":"2025-06-26T10:24:29+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/11\/TCS-on-Sale-of-Scrap.jpg","type":"image\/jpeg"}],"author":"Chaitra Seetharam","twitter_card":"summary_large_image","twitter_creator":"@caclubindia","twitter_site":"@caclubindia","twitter_misc":{"Written by":"Chaitra Seetharam","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#article","isPartOf":{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/"},"author":{"name":"Chaitra Seetharam","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/person\/abe1f226c9415785edf10b4313c9cacb"},"headline":"TCS on Sale of Scrap under 206C","datePublished":"2025-06-17T08:03:53+00:00","dateModified":"2025-06-26T10:24:29+00:00","mainEntityOfPage":{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/"},"wordCount":768,"commentCount":0,"publisher":{"@id":"https:\/\/www.caclubindia.com\/guide\/#organization"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#primaryimage"},"thumbnailUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/11\/TCS-on-Sale-of-Scrap.jpg","articleSection":["Income Tax"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#respond"]}]},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/","url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/","name":"TCS on Sale of Scrap under 206C - Tax Guide","isPartOf":{"@id":"https:\/\/www.caclubindia.com\/guide\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#primaryimage"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#primaryimage"},"thumbnailUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/11\/TCS-on-Sale-of-Scrap.jpg","datePublished":"2025-06-17T08:03:53+00:00","dateModified":"2025-06-26T10:24:29+00:00","description":"TCS on Sale of Scrap - TCS is collected by the seller when selling scrap materials which is then paid to the government.","breadcrumb":{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388855022"},{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388892217"},{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388908471"},{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388917758"},{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388974854"},{"@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388991507"}],"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#primaryimage","url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/11\/TCS-on-Sale-of-Scrap.jpg","contentUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/11\/TCS-on-Sale-of-Scrap.jpg","width":1200,"height":630},{"@type":"BreadcrumbList","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.caclubindia.com\/guide\/"},{"@type":"ListItem","position":2,"name":"TCS on Sale of Scrap under 206C"}]},{"@type":"WebSite","@id":"https:\/\/www.caclubindia.com\/guide\/#website","url":"https:\/\/www.caclubindia.com\/guide\/","name":"Tax Guide","description":"All tax related info news and updates in one place.","publisher":{"@id":"https:\/\/www.caclubindia.com\/guide\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.caclubindia.com\/guide\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.caclubindia.com\/guide\/#organization","name":"CAclubindia","url":"https:\/\/www.caclubindia.com\/guide\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/logo\/image\/","url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/05\/cropped-icon-384x384-1.png","contentUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/05\/cropped-icon-384x384-1.png","width":512,"height":512,"caption":"CAclubindia"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/caclubindia","https:\/\/x.com\/caclubindia","https:\/\/www.instagram.com\/caclubindia\/","https:\/\/www.linkedin.com\/company\/caclubindia\/","https:\/\/www.youtube.com\/caclubindia?sub_confirmation=1"]},{"@type":"Person","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/person\/abe1f226c9415785edf10b4313c9cacb","name":"Chaitra Seetharam","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/78b5101dc51a6bdf622917fe10dddf6a0eeb09d7280a1bc4eee34515a53d5a85?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/78b5101dc51a6bdf622917fe10dddf6a0eeb09d7280a1bc4eee34515a53d5a85?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/78b5101dc51a6bdf622917fe10dddf6a0eeb09d7280a1bc4eee34515a53d5a85?s=96&d=mm&r=g","caption":"Chaitra Seetharam"},"url":"https:\/\/www.caclubindia.com\/guide\/author\/chaitra-s\/"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388855022","position":1,"url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388855022","name":"Is GST inclusive while calculating TCS?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The tax should be collected at the time of debiting of the amount payable by the buyer to his account or at the time of receipt of such amount from the buyer, whichever is earlier. Hence, TCS should be collected inclusive of GST.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388892217","position":2,"url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388892217","name":"What is the rate of TCS on the sale of scrap?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The rate of TCS under 206C on the sale of scrap is 1%.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388908471","position":3,"url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388908471","name":"Are there any exemptions from penalties?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A taxpayer can avoid penalties under section 271H in case the delay was due to a reasonable cause or the TCS amount was credited to the government on time.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388917758","position":4,"url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388917758","name":"Is TCS applicable if the scrap is not generated from manufacturing or mechanical work?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"TCS may not be applicable if the item sold as scrap is not generated from manufacturing or mechanical work.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388974854","position":5,"url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388974854","name":"Is TCS refundable?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes, TCS can be refunded if the TCS paid exceeds actual tax liability. One can claim the refund by filing the Income Tax Return (ITR).","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388991507","position":6,"url":"https:\/\/www.caclubindia.com\/guide\/tcs-on-sale-of-scrap\/#faq-question-1731388991507","name":"How and where to check the details of TCS credit?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Form 26AS displays the details of Tax Collected at Source (TCS) made by the seller. It will display the seller\u2019s details such as PAN, name, gross amount, section and tax amount.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/comments?post=973"}],"version-history":[{"count":2,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/973\/revisions"}],"predecessor-version":[{"id":2361,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/973\/revisions\/2361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/media\/974"}],"wp:attachment":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/media?parent=973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/categories?post=973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/tags?post=973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}