Tax collection on scrap sales requires sellers to collect TCS at debit or receipt, subject to resident buyer declaration. Sale of scrap attracts tax collection at source under section 394(1), Table serial number 4. The seller must collect tax at 2% at the earlier of debiting ... Summary
Tax collection on scrap sales requires sellers to collect TCS at debit or receipt, subject to resident buyer declaration.
Sale of scrap attracts tax collection at source under section 394(1), Table serial number 4. The seller must collect tax at 2% at the earlier of debiting the buyer's account or receiving payment. No monetary threshold applies. A resident buyer may furnish a declaration under section 394(2) as an exception to collection. The corresponding earlier framework for scrap sales prescribed collection by the seller at the same point of time, but at a lower rate of 1%.
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