Tcs os sale of fly ash
Pradeep Kumar Sarangi
(Querist) 14 January 2024
This query is : Resolved
Whether TCS is applicable on sale of Fly Ash u/s 206C(1) of Income Tax Act ?
Regards
Pradeep
T. Kalaiselvan, Advocate
(Expert) 14 January 2024
The seller is liable to collect TCS when receiving payments above ₹50 Lakhs in a financial year. Sellers with a turnover of over ₹10 Crores in the previous year need to collect TCS for certain payments.
Under Section 44AB, anyone earning income above ₹50 Lakhs from a profession or ₹5 Crores from a business is liable to get their books of accounts audited
Sellers need to deduct TCS at a rate of 0.075% from buyers for receiving consideration above ₹50 Lakhs in a fiscal year
These limits are based on the following conditions:
If the cash payment is lower than 5% of total payments
If the cash receipts are lower than 5% of total receipts
Pradeep Kumar Sarangi
(Querist) 15 January 2024
Sir,
My query was to section 206C(1) of Income Tax Act except the TCS provision u/s 206C(1H). According to the rules, whether the sale of wastage i.e. fly ash is subject to tax or not.
T. Kalaiselvan, Advocate
(Expert) 15 January 2024
TCS applicable on Minerals, being coal or lignite or iron ore etc.
Fly Ash considerable as waste which generates from the manufacturing process which is defined in the Income Tax Act u/s 206C.
Fly ash is not included. So no TCS
P. Venu
(Expert) 17 January 2024
What is the context for this query?
