TaxTMI 
TaxTMI 
Whether TDS has to be deducted on scrap metal purchased from SEZ unit ?
TDS on purchase of Scrap Metal from SEZ
09 Apr 2025 
5 Replies 
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TDS on SEZ purchases depends on inter State supply classification; deduct only where exemption conditions are not met.
TDS liability on scrap metal purchases from an SEZ unit depends on SEZ supplies being treated as inter State supplies and on the Notification proviso under the TDS provisions: if the supplier location and place of supply are in a State or Union territory different from the recipient's registration, no deduction is required; otherwise TDS may apply. Verification of supplier location, place of supply and any amendments to the notification is necessary. (AI Summary)
TDS liability on scrap metal purchases from an SEZ unit depends on SEZ supplies being treated as inter State supplies and on the Notification proviso under the TDS provisions: if the supplier location and place of supply are in a State or Union territory different from the recipient's registration, no deduction is required; otherwise TDS may apply. Verification of supplier location, place of supply and any amendments to the notification is necessary. (AI Summary)