TCS on Scarp sale

This query is : Resolved

Saurabh Garg (Querist)
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24 July 2010 Whether a person trading in Scrap is requires to collect TCS ?
&
When & to whom liability to collect TCS on scrap arises?

Please help me out....

Ram Avtar Singh

Ram Avtar Singh (Expert)
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24 July 2010 Scrap Saler to be collect TCS

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Saurabh Garg

Saurabh Garg (Querist)
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25 July 2010 Thank u sir

Saurabh Garg

Saurabh Garg (Querist)
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25 July 2010 Sir, thanx for ur kind reply..

I would further like to know if we are just trading in scarp thn also do we required to collect TCS..

As we know if we are selling to purchaser thn seller is not required to collect TCS.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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25 July 2010 yes TCS applicable on traders also. you will collect TCS from customers. if customer is manufacturer he will provide declaration in form 27C for using in manufacturing, then TCS not to be deduct.

Saurabh Garg

Saurabh Garg (Querist)
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26 July 2010 Thank u once again sir

Saurabh Garg

Saurabh Garg (Querist)
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26 July 2010 Sir, Let us have a example :

If Firm A is a manufacturing unit and sold the scrap to Firm B which is a trader.

Firm A collects TCS from Firm B.

Now Firm B which is a trader sell that scrap to others including traders & manufacturers.?

Now from manufacturers Firm B can obtain Certificate and wont collect TCS

And When firm B sold the same to traders It will be liable to collect TCS.

Is this example correct.?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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26 July 2010 Yes, TCs paid by purchaser to be adjust in advance tax.

TCS to be collect by saller every point on sale of scrap.

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Saurabh Garg

Saurabh Garg (Querist)
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26 July 2010 Thanks alot sir
For your kind cooperation

Saurabh Garg

Saurabh Garg (Querist)
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19 August 2010 Sorry Mr. Ram It is not applicable to traders

I have taken the interpretation from many other CA's.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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