08 October 2014
From the following definition of IT it covers. Scrap (Scrap means waste and scrap from the manufacture or mechanical working of materials which is usable as such because of breakage, cutting up, wear and tear and other reasons)
As per Section 206C of Income Tax Act, Following are not covered- Waste or scrap arising from packing materials, newspaper, old machinery scrapped, etc. which cannot be said to arise from manufacture.
08 October 2014
This is not scrapping of old machinery it is worn out parts replaced during the process of manufacture treated as scrap in our company and collected TCS.
08 October 2014
Machinery is used for processing but machinery is not processed. So here scrap is not being generated from the processing activity. It is just a case of sale of Old Machinery. So technically as per provision TCS not required to be collected. Even if you collect TCS buyer will get the credit. But technically TCS not applicable.
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