![]() ![]() Furthermore, it may involve additional steps. Any mistake in filling out this form will require you to repeat this process all over again. Remember to crosscheck all the information before submitting. ![]() Buyers must carefully fill in all details like their name, address, PAN, purchased goods and utilities. When submitting Form 27C, it is critical to include correct information. This document is tangible proof, safeguarding the buyer's rights and encouraging tax transparency. The buyer tells the seller that the transaction comes within the appropriate parameters, allowing them to claim the exemption. Scarp (scrap or waste from mechanical working or manufacturing of materials that is not usable due to cutting up, breakage, wear or any other reason)įorm 27C is required to determine the buyer's eligibility for TCS exemption. Sole Proprietary Firm or Partnership Firm Leasing or licensing of toll plaza, parking area Timber acquired by any means except for forest leaseĪny forest produce other than Tendu or Timber Indian Made Foreign Liquor (IMFL) - alcoholic liquor for consumption by human Form 27C Applicabilityįollowing is a list of sellers, goods and buyers who fall under the applicability of Form 27C: You must note that this declaration needs to be submitted to the seller, who has to provide a copy to concerned authorities before or on the seventh day of the next month. The buyer has to submit a duplicate form by declaring that all purchased goods are used for manufacturing or processing purposes and not for trading. Form 27C Declaration of Exemption Under TCSįorm 27C submission allows a total exemption in TCS. Moreover, the buyer has to provide a duplicate declaration with Form 27C. However, he/she needs to be an Indian resident and use all goods purchased to manufacture, produce or process articles or goods. However, if the buyer is not liable to pay TCS, he/she can file Form 27C. Rules state that the seller of goods needs to collect taxes from the buyer. What is Form 27C of the Income Tax Act?Īs per the Income Tax Act, Form 27C is a declaration form for non-deduction of Tax Collected at Source (TCS) by the buyer of goods to its seller. Keep reading to learn how to file Form 27C, its applicability, the documents required and more. In this case, the list of specific goods includes timber, scrap materials, tendu leaves, etc. Now, if the buyer is not liable to pay any taxes and wishes to inform the seller about the non-deduction of taxes, he/she can su bmit Form 27C of the Income Tax Act. Tax Collected at Source (TCS) is a system where a seller of certain goods collects taxes from the bu yer.
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