20 March 2010
No- According to me you are not liable for TCS. Scrape has been defined as waste and scrape from manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up wear & other reason. From the definition in case of sale of scrape, the provision would apply to only those sellers who are engaged in the business of manufacturing or mechinical working of materials. As in your case it is trading, the TCS not apply.
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