Section 206C - TCS on Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc [ Section 206C(1) to (1E) ]

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....ver is earlier, collect from the buyer, a sum equal to the following percentage  of the purchase price, as income-tax. S.No Nature of goods Rate tax collection at source of Purchase Price 1. Alcoholic liquor for human consumption 1% 2. Tendu Leaves 5% 3. Upto 31.03.2025 - Timber obtained under a forest lease  2.5% From 01.04.02025 - Timber or any other forest produce (not being tendu leaves) obtained under a forest lease [ Amended vide Finance Act 2025 ] 2% 4. Timber obtained by any mode other than under a forest lease Upto 31.03.2025 - 2.5% From 01.04.2025 - 2% [ Amended vide Finance Act 2025 ] 5. Any other forest produce not being timber or tendu leaves [ W.e.f. 01.04.2025 Omitted vide Finance....

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....in this definition of the scrap meant for singular item i.e. "waste and scrap". The word waste "which is" denotes to singular item and thus the singular item would be waste and scrap. The findings of the learned CIT(A) are based on presumption only that since the assessee is engaged in manufacture of fluorine and other refrigerated gases, therefore, entire scrap is generated out of its manufacturing activities.  Non-applicability of section 206C(1) * Self declaration by buyer if relevant goods are purchased for manufacturing or producing any articles or things [ Section 206C(1A) & Rule 37C ] * No collection of tax shall be made in the case of a resident buyer, if such buyer furnishes to the person responsible....