We are real estate developers. Developing a residential project, my query is we are procuring construction material for our project example steel and cement. Now some quantity of steel we are going to sell through scarp because of some failure during steel text.
Query 1.Would TCS be applicable on same? 2.How will be calculating TCS amount on scarp value if scarp value is 10,000,00/- 3.How to deposit TCS to Government.
08 February 2010
1.The word scrap has been defined in Explanation (b) to Sec.206C of the Act to mean “waste & 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. It nowhere says that such waste or scrap should be generated out of the manufacturing process.Therefore, TCS would be applicable here. 2) The TCS will be 1 % i.e. for amount of Rs.10 lacs, it will be Rs. 10,000/- 3)At the authorised bank by the same procedure for TDS. You can make e-payments also.
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