Wazirpur Industrial Area, Delhi
Accounting for Wazirpur's steel and metal units
Metal units buy and sell by weight, lose some in every process and sell what is left as scrap. In Wazirpur, regulatory action on one process has also meant that some units have changed what they do, or where. Each of these leaves a mark on the books.
Yield is the number to watch
If 1,000 kg goes in and less comes out, the difference should be explained, not assumed. This is an illustration with invented figures, to show the calculation only.
| Item | Weight | Why it matters |
|---|---|---|
| Material issued | 1,000 kg | Should match the stock register and the supplier's bill |
| Good output | 940 kg | Becomes finished stock, or goes back to the customer in job work |
| Scrap recovered | 45 kg | Should appear later as a scrap sale |
| Unexplained loss | 15 kg | Compare it with your normal rate. A sudden rise needs an explanation |
Record this by batch, grade or coil where you can. Grades of steel differ widely in price, so a loss in one grade is not the same as a loss in another.
Selling scrap
Offcuts and rejected metal are real income for a unit like yours, and may also bring a duty to collect tax from the buyer. That comes from the table in section 394(1) of the Income-tax Act, 2025, which printed 1% for scrap when enacted. Since then, a June 2026 Railway Board letter has charged 2% and cited the Finance Act, 2026, so confirm today's figure before you rely on either.
Also check that your material meets the section's meaning of scrap, since usable metal may not. Some buyers can give a declaration that changes the position, and that form belongs in your file. Bill every scrap lot, even small ones. If the bills add up to far less than your yield record suggests, someone will ask why.
Working for others
If you process a customer's material for a charge, it is not your stock, and only the charge is your sale. Keep a register showing whose metal you hold, by weight.
If you are the customer, section 143 of the CGST Act keeps responsibility for accounts with you as principal. Inputs must be back, or supplied from there, within one year. See accounting for manufacturers. Also agree who keeps the scrap from the job, since this affects both parties' figures.
If a process has stopped or moved
A Delhi Pollution Control Committee status report from 2020 records closure of steel pickling units in Wazirpur following National Green Tribunal directions, and removal of plant and machinery by some. We have not found a later position, so take current advice on what is allowed. This page does not suggest anything about any particular business.
If your unit changed its work, these points deserve a clear record:
- Machinery sold, scrapped or moved, with dates and values
- Closure, shifting and environmental compliance costs
- Work now sent to outside units, and any new place of business to add to your registration
- Stock and credit balances relating to the stopped process
Questions to ask Deepak Mittal before work starts
- Have you worked with metal units, and how do you test yield?
- How do you value stock when prices move sharply?
- How will my job work register tie in with my GST filings?
- How do you treat machinery that is idle or has been sold?
AccountOrbit takes enquiries by phone from anywhere in Delhi, including Wazirpur, but has no office there. A few months of yield and scrap figures, even rough ones, make the first conversation far more useful.
Sources checked, November 2026
- Income-tax Act, 2025, Gazette copy (opens in a new tab), section 394 as enacted (read at source; amended by the Finance Act, 2026)
- Railway Board letter on scrap, 17 June 2026 (opens in a new tab) (an official letter; we read it on Staff News, a third-party site)
- CGST Act as amended to 1 January 2022 (opens in a new tab), section 143 (read at source; check for later changes)
- DPCC report on steel pickling units, March 2020, via India Environment Portal (opens in a new tab); Department of Industries, North Zone (opens in a new tab) (official list of the area)
Running a metal unit in Wazirpur?
Tell us what you process, whether you work for others, and how your stock is recorded today.
