Tax collection at source on scrap sales requires seller collection without a monetary threshold, subject to resident buyer declaration.

Section 394(1), Table Sl. No. 4 requires the seller to collect tax at source on sale of scrap at 2%, at the earlier of debit of the buyer's account or receipt of consideration. No monetary threshold applies. A resident buyer may seek exclusion from collection by furnishing a declaration under Section 394(2). The framework retains the seller's role, timing of collection, and absence of a threshold under the earlier TCS regime, while increasing the collection rate.

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