Applicability of tcs on scrap

Dear Friends,

We are a manufacturing Company and are using different inputs, being purchased by us in various packing.

After use of material, we are selling this used packing material( Corrugated boxes, Cartons, poly bags etc) and other mechanical waste, generated due to varied maintenance or fabrication work in the factory.

What is the applicability of TCS on this or whether the same may be treated as manufacturing or mechanical waste for the purpose of TCS.

Regards,

CA. Krishna KUmar Srivastava

 

 

 

 

 

Replies (1)

No tax will be deducted from a buyer who purchases specified goods not for the purpose of trading but for the manufacturing,processing,or production of goods/article or thing.

 

  • In this case Buyer gives a declaration, for above use, in duplicate in Form 27C to the seller.
  • The seller shall deliver one copy ,form 27C collected from buyer, to Chief Commissioner/ Commissioner of Income tax.

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