CBIC Mandates 2% TDS On B2B Metal Scrap Transactions

10/16/2024 11:08:30 AM

(MENAFN- KNN India) New Delhi, Oct 16 (KNN) The Central Board of Indirect Taxes and customs (CBIC) issued Notification No. 25/2024-Central Tax on 9 October 2024, mandating a 2 per cent Tax Deducted at Source (TDS) on purchases of metal scrap from registered suppliers.

The new rule, which came into effect on 10 October 2024, applies to all businesses engaged in B2B transactions involving metal scrap.

This measure aims to enhance tax compliance and streamline revenue collection in the sector.

Under the new guidelines, the TDS structure varies depending on the nature of the transaction. For intra-state supplies, the 2 per cent TDS is equally split between the Central Goods and Services Tax (CGST) and the State Goods and Services Tax (SGST), with each accounting for 1 per cent.

In contrast, inter-state transactions will see the entire 2 per cent TDS fall under the Integrated Goods and Services Tax (IGST) category.

(KNN Bureau)

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