Can anyone say that TCS is applicable for newspaper publishing company. If yes then from which scrap amount the same to be collected.
Sita Mulchandani (professional) (51 Points)
28 October 2009Can anyone say that TCS is applicable for newspaper publishing company. If yes then from which scrap amount the same to be collected.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 28 October 2009
cut waste papers,cardboard,brown sheets, are all scrap for a news paper Publishing company on which TCS can be collected.TCS is applicable for any scraps .please can any one correct me if i am wrong
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 28 October 2009
TCS is no applicable on the scrap arising from the newapapers or publishing industry, as the section has specifically mentioned that
"Scrap to include only such waste or scrap which arises from manufacture of mechanical working of material",
thereby excluding newspapers and publishing as these are not 'manufacture'
Regards,
CA. Amol G. Kabra
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 28 October 2009
Thanks Mr Amol Gopal Kabra for correcting me and giving your valuable views on the same
Sita Mulchandani
(professional)
(51 Points)
Replied 28 October 2009
Amol
I agree to your answer but scrap which arise from publishing company other than newspapers that is plates and plastic cans of inks and other miscellaneous items etc which arises becuase of processing. I have to confirm is it covered. It also includes paper waste from publishing.
Sita Mulchandani
(professional)
(51 Points)
Replied 28 October 2009
If scrap is sold to many persons in cash like roadside purchasers who is not having any PAN no. then how can we show the same in TCS return.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 28 October 2009
Let me clarify your doubt. The TCS is applicable to scrap and waste arising out of manufacturing. if newspaper and publishing is not manufacturing, then TCS wont be applicable to the plates and plastic cans, inks, etc. as it is not applicable in toto and not product wise. So, concluding to the answer, it is not applicable.
Regards,
CA. Amol G. Kabra
Sita Mulchandani
(professional)
(51 Points)
Replied 28 October 2009
Act says that TCS is not applicable on newspapers but refer the definition of manufacture section 2(29BA) which is amended from A.Y 2009-10.
Sita Mulchandani
(professional)
(51 Points)
Replied 28 October 2009
Amol
Kindly correct my previous reply that explanation given that newspaper scrap is exempt is given only in taxmann but can u give me the reference that whether it is in Bare Act or Rule. As per the amended definition of manufacture and section of 206C TCS on newspaper scrap will be applicable. Kindly let me know if you got any other clarification in this regard.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 28 October 2009
There is nothing in rule or bare act. I will have to look for any judgement if any exists. But if you look at the definition of manufacture as given in the Section 2(29BA),
it states
"manufacture", with its grammatical variations, means a change in a non-living physical object or article or thing-
(a) resulting in transformation of the object or article or a thing into a new and distinct object or article oe thing having a different name, character and use; or
(b) bringing into existence of a new and distinct object or article or thing with a differentt chemical composition or inntegral structure.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 28 October 2009
There is nothing in rule or bare act. I will have to look for any judgement if any exists. But if you look at the definition of manufacture as given in the Section 2(29BA),
it states
"manufacture", with its grammatical variations, means a change in a non-living physical object or article or thing-
(a) resulting in transformation of the object or article or a thing into a new and distinct object or article oe thing having a different name, character and use; or
(b) bringing into existence of a new and distinct object or article or thing with a differentt chemical composition or integral structure.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 28 October 2009
Due to some problem in browser, the message didnt get posted completely. So, after the definition part, please read as below.
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However, if you look at the newspaper and publishing sector, its actually not a manufacture. They are neither manufacturing a paper nor ink nor any other thing. Its only a process of printing and publishing the same for some use and after that after a certain period of time, its value is over, say a day, week or a month. Newspaper is not said to be manufactured. Its always printed and published. So the interpretation of the definition cant include manufacture.
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Even if you consider other acts, e.g. Central Sales Tax Act, it excludes Newspapers from the purview of goods or commodity, whatever they define.
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Even if it not mentioned in the Act, it is clearly and correctly interpreted by Taxmann that newspaper publishing is not or cant be included in manufacture.
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The thing is that there arises scrap in the process of printing, but if the main process is itself not a manufacture, merely existence of scrap in any such process cant make it liable for TCS.
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If you, or any body reading this reply has got any other view or clarification, do share.
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alpesh
(PTRN)
(22 Points)
Replied 14 March 2012
dear
from defination of manufacturing it is clear that it is also covered and hence tcs can be
applicable
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