TCS on scrap

[venkat eswaran]

Dear All,

We used to make scrape invoice appr for 1 lakh in a year in various dates. Whether we have to add TCS on this?

If TCS added after that we have to file TCS return like TDS qutrly return anything ? Any exemption limit for TCS transactions?

Pl clarify

thanks in advance

Venkat

AI Summary

TCS of 1% on Scrap Invoices Under Section 206C; Exemption for Manufacturing Use, Not Trading A user inquired about the applicability of Tax Collected at Source (TCS) on scrap invoices totaling approximately 1 lakh annually. They asked if TCS must be added and if a TCS return similar to a quarterly TDS return is required, along with any exemption limits. A respondent clarified that under Section 206C, a 1% TCS is required from the buyer by the seller of scrap. An exemption is available if the buyer declares the scrap is for manufacturing purposes, not trading. Another participant agreed with this interpretation.