Question ID :
31651
TCS
Tcs is applicable @ 1 under section 206c on scrap. this is specific provision for scrap, does it mean that traders who are not liable to tax audit having low turnover are also liable to tcs for scrap or their is any limit for applicability of tcs.
please guide me for same.
Posted by
NADIR D SHAIKH
on
May 28, 2018
Filed Under
DIRECT TAXES
Answer ID :
68694
No monetary limit for TCS applicability except for motor vehicle sales.
Posted by
B.CHACKRAPANI WARRIER on
May 28, 2018
Answer ID :
68695
Applicability of 206C
a) In case of individual seller, his books of accounts are required to be audited under section 44AB during the financial year immediately preceeding the financial year in which the goods are sold.
b) There is no limit specified for scrap sale.
As per some decided case laws, the seller must be engaged in the business of manufacturing or mechanical working of materials.
Posted by
PRADEEP C B on
May 28, 2018
Answer ID :
68708
If the seller is an individual and not covered under 44AB in the immediately preceeding financial year, 206C does not apply during the transaction year.
Posted by
B.CHACKRAPANI WARRIER on
May 29, 2018