Tcs on sale of scrape to manufaturer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 Dear expert

Plz advise the TCS is applicable in case of sale of scrape by manufacturer (cement) to another manufacturer.This scrape is raw material for that manufacturers(purchaser). If TCS is attracted then give rate and amount on which such TCS is calculated.

CMA Pravat Kumar Parida

CMA Pravat Kumar Parida (Expert)
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01 October 2011 Yes, TCS is applicable on sale of Scrap. The rate of TCS is 1% and is collected by the seller on the bill value issued to the purchaser. so TCS is charged by seller on bill value add TCS 1% to it.

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 Thanks for reply, plz confirm any exemption in case of Purchaser of scrape is manufaturer

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Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 Thanks for reply, Plz confirm any exemption in case of Purchaser of scrape is manufacturer

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 Thanks for reply, Plz confirm any exemption in case of Purchaser of scrape is manufacturer

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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01 October 2011 U/S 206 TCS is applicable @ 1%

Preety Parik

Preety Parik (Expert)
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01 October 2011 TCS is applicable only if the purchaser uses it for trading. In your case the purchaser has used as raw material for manufacture. Hence TCS is not applicable if u get declaration from the purchaser in the form 27C.