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Tcs (on scrap) under income tax act to be collected during first year of doing business

Sanju.P (CA Practice ) (111 Points)

22 February 2019

Hi,

Does TCS ( on SCRAP) under Income Tax Act needs to be collected from customer during First Year of doing Business?

Thanks in Advance.

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1 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166790 Points)
Replied 22 February 2019

Classification of Seller for TCS

Under TCS, a seller is defined as any of the following:

- Central Government
- State Government
- Any Local Authority
- Any Statutory Corporation or Authority
- Any Company
- Any Partnership Firm
- Any Co-operative Society
- Any individual/HUF whose total sales or gross receipts exceed the prescribed monetary limits as specified under section 44AB during the previous year

Classification of Buyer for TCS

A buyer is classified as a person who obtains goods or the right to receive goods in any sale, auction, tender or any other mode. The following are not included:

- Public Sector Companies
- Central Government
- State Government
- Embassy of High Commission, Consulate and other Trade Representation of a Foreign State
- Any Club, such as social clubs, sports clubs and the like