How to manage funds generated through waste management

Q: I am currently residing in 84 flat apartment in Bangalore. Some of the members in our association would like to efficiently segregate the daily waste and sell some of the non-biodegradable items like plastics, bottle and polythene covers etc. to old paper mart.

However, we are not sure if the money gained by selling the old items are taxable, any proof for source of this income needs to be filled during the yearly finance audit.

Please advice, how to manage the funds that are generated through waste management. Do we need a separate apartment bank account specifically for this purpose.

CF User,

30th January 2014

Legal in Bangalore

waste management

bangalore real estate

apartment in bangalore

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Replies (1)

The Waste comes under Scrap Sales and the Association has to register with Commercial Tax Dept and they have to collect VAT @ 5% on the value of Scrap Sold to any body. And they have to remit the Tax collected to the Commercial Tax Dept monthly and they have to file returns.

This has to be accounted as Income from Scrap and is liable to Income Tax.

There is no need for having a separate bank account for this. Also please check with with your Auditor for better clarification.