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Scrap Sold

First!!!! (student) (162 Points)

27 May 2010

Hi,

Is there any threshold limit for TDS to be deducted on scrap sold?

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9 Replies

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 27 May 2010

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DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 27 May 2010

dear you are not making payment so you are not liable to deduct TDS. TDS is to be deducted when we are making payment and you are making sale here so deduct TCS instead of TDS

Sanket Damodar Karve (Business) (179 Points)
Replied 27 May 2010

SEC 206C (1) Tax collected at source will be applicable

Every person, being a seller of any of the specified goods, shall collect tax on purchase value from the buyer

Scrape @ 1%

Such tax shall be collected by the seller either at the time of debiting or at the time of receipt, which is earlier.

Regards

Sanket Damodar Karve (Business) (179 Points)
Replied 27 May 2010

SEC 206C (1) Tax collected at source will be applicable

Every person, being a seller of any of the specified goods, shall collect tax on purchase value from the buyer

Scrape @ 1%

Such tax shall be collected by the seller either at the time of debiting or at the time of receipt, which is earlier.

Regards

harish sharma (student) (58 Points)
Replied 27 May 2010

section 206C

(1)Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of Scrap a sum equal to the 1 percentage,of such amount as income-tax:

(1A)Notwithstanding anything contained in sub-section (1), no collection of tax shall be made in the case of a buyer, who is resident in India, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the goods referred to in column (2) of the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes.

hence u r required to deduct tax @ 1%