aishwarya s raghavan (student) (224 Points)
03 December 2013Dear All,
Please clarify on which amount should TCS be collected. The company has made a scrap sale of Copper wire to its Purchase vendor. The value of scrap sold is Rs.70,500 and has charged VAT at the rate of 5% amounting to Rs.3525 on such scrap. Now should the company collect TCS on scrap value or including the VAT portion?
Also, can the company treat such sale amount of Rs.70500 as discount (since it is made to purchase vendor) and account it the same way?
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 03 December 2013
Sir,
In my view TCS is treated as TDS. So that we have deducted TDS amount on contractor as it TCS also deducted sam.
shiwani vaishnav singh
(Sr. Accountant)
(32 Points)
Replied 03 December 2013
jaydeep joshi
(PRACTICING)
(42 Points)
Replied 03 December 2013
Shruthi
(Article Assistent)
(336 Points)
Replied 03 December 2013
TCS is calculated on
SALE PRICE + DUTY + VAT.
Company can treat scrap sale as discount. But in this case it would be better to show separately.
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 03 December 2013
| Originally posted by : Shruthi | ||
 |
TCS is calculated on SALE PRICE + DUTY + VAT. Company can treat scrap sale as discount. But in this case it would be better to show separately. |
 |
Agree
CA Vikas Garg
(Own Business)
(453 Points)
Replied 03 December 2013
Dear,
As per your Querry,
TCS is collected on Total Amount ( Sale Amt+ Any Duty). Keep in mind TCS is your as TDS deducted, in filing of return u will claim that amount.
After some time in your 26AS this TCS amount will also reflect deduct by company.
NOUFAL
(ACCOUNTANT)
(762 Points)
Replied 04 December 2013
As early said. TCS as TDS. you can collect the Tax of the total amount of sale (like TDS) sales value + Duty/Excise Duty+ Vat * Prescribed Rate of TCS ( For scrap sale 1 % is sheduled)
ie 70500 + 5% = 74025* 1% = 740.25
Deepak
(ZZZ)
(57 Points)
Replied 04 December 2013
aishwarya s raghavan
(student)
(224 Points)
Replied 04 December 2013
In our case, the company failed to collect TCS. Can they collect it now and remit the same to govt? what is the interest rate for delay in payment?
sivashankar
(Student CA IPC / IPCC)
(55 Points)
Replied 14 June 2016
sir i want to know about TCS on cotton waste
MR . A purchase cotton from Y farmer then MR .Y processing something he have some scrap he sale that to MR. B he is a manufacture he have some scrap he sale that scrap to MR.C
who collect TCS here
CAclubindia
