TCS on capital goods scrap sale

[Parth Bhatt]

Is TCS applicable on capital goods scrap sale?
two scenarios i) capital goods used in manufacturing which is falling under plant nd machinery ii) capital goods which is not directly related to manufacturing e.g office area AC. now what wud be tcs applicability in both ds scenarios ? my gut feel/understanding is dt some scrap may not fall under d meaning of 'scrap' but if there is m income element..it wud definately fall under waste..whthr capital goods or purchase/expensed out goods item. Kindly clarify.

AI Summary

Clarification Sought on TCS Applicability for Scrap from Capital Goods; Refer to Circular 22/2016 for Recent Amendments. A query was raised regarding the applicability of Tax Collected at Source (TCS) on the sale of scrap from capital goods, specifically in two scenarios: capital goods used in manufacturing (plant and machinery) and capital goods not directly related to manufacturing (e.g., office air conditioning). The discussion highlighted uncertainty about whether such scrap qualifies as 'scrap' under tax laws. Responses advised consulting recent changes in TCS regulations and referred to Circular 22/2016 for guidance on the latest amendments.