One of my client buys scrap on which he pays TCS. Now when he resells such scrap is he liable to collect tax at source from the purchaser?
HARESH KARVAT (PROPRIETOR) (28 Points)
07 June 2011One of my client buys scrap on which he pays TCS. Now when he resells such scrap is he liable to collect tax at source from the purchaser?
Rajat Garg
(Article)
(47 Points)
Replied 07 June 2011
1.Manufacturing not Involved - If the scrap dealer is selling the scrap 'AS IT IS' i.e without any modification/ processing, in that case he is liable to collect TCS from the buyer @ 1%.
2. manufacturing Involved - if there is any manufacturing process involed the it shall be treated as 'good' and therefore no TCS shall be collected.
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