I have a doubt regarding Treatment of Scrap Sales in MVAT.
Our Company want to sell some used material. Will TCS or VAT attract the sale. If yes is there any Basic exemption limit and at what rate. What are the formalities to be complied with.
13 January 2012
If company is holdiong/liable to hold TIN No. under MVAT, sale of scrap will be taxable.
Income-tax will have to be collected at source under the provisions of section 206C by all persons referred to in section 44AC of the Income-tax Act, 1961 (e.g. Central Government, State Government, local authority, corporations, etc.) at the specified rates, with reference to the purchase price including the excise duty, etc.
14 January 2012
IT IS STATUTORY OBLIGATION TO APPLY FOR REGISTRATION UNFDER M VAT ACT FOR RC. IF FOLLOWING CONDITIONS ARE FULFILLED a) Limit of turnover Rs. 1,00,000.— in the case of a dealer, who is an importer, and the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000/-.
(b) Limit of turnover Rs. 5,00,000.— in any other case, where the value of taxable goods sold or purchased by him during the year is not less than Rs. 10,000.
If turnover of total sale does to attain the above limits, then Registration can be obtained VOLUNTARILY by observing prescribed formalities.
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