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.

[YAGAY andSUN]

In recent past changes were made in TCS, please check the authentic information and act accordingly.

[Ganeshan Kalyani]

Please refer Circular 22/2016 dated 08.06.2016 regarding latest amendment in TCS provision.

AI Summary

TCS on scrap sales: applicability for capital goods scrap depends on amended provisions and guidance from government circular. Applicability of TCS on sale proceeds from disposal of capital goods scrap depends on whether such receipts qualify as 'scrap' under the amended TCS provisions; the position differs where scrap arises from plant and machinery used in manufacturing versus capital goods not directly related to manufacturing. Recent amendments and administrative guidance, notably Circular 22/2016, bear on whether collection obligations arise and must be consulted to determine chargeability and compliance.