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 ?

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Pradeep

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This discussion clarifies whether Tax Collected at Source (TCS) is applicable to the sale of fly ash under Section 206C(1) of the Income Tax Act. Based on the provided information, fly ash, considered a waste product from manufacturing, is not explicitly listed under the specified items for TCS collection in Section 206C. Therefore, TCS is generally not applicable to its sale.

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
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