Where assessee was trading into scrap, provisions of section 206C were attracted and assessee was duty bound to collect TCS on sale of scrap
• Where assessee had himself admitted that he was dealing in the scrap generated from the breaking of the ship and had purchased the scarp, the assessee was liable to collect tax at source under section 206C on the sale of scrap. It was not necessary that such mechanical working (breaking of the ship) should be carried out by the assessee himself. The material sold by the assessee could not be used as such without any modification by the buyer of the said scrap. As the said material/goods came from the breaking of the ship, these goods were sold to the manufacturer/rerolling mills, as scrap therefore, the goods (scrap) sold by the assessee were not usable as such and therefore, the assessee was required to collect TCS from the buyer.
|TCS on Scrap also applicable on Traders Dealing in Ship Breaking|