Income Tax Dept releases FAQ for Form 27C

The Income Tax Department has released the FAQ for Form 27C. According to the provisions of the Income Tax Act, 1961, the Form 27C serves as a declaration document that indicates the buyer of goods will not deduct Tax Collected at Source (TCS) when purchasing from the seller. Regulations require the seller to levy taxes on the buyer's transaction. Nevertheless, if the buyer is exempt from paying TCS, they have the option to submit Form 27C.

Form 27C is applicable to buyers of goods solely when the purchased items are intended for the purpose of producing, manufacturing, or processing additional goods, articles, or items. If the goods are acquired for trading purposes, Form 27C cannot be employed to claim tax exemption.

FAQs

1. Who is required to file Form 27C on the E-filing portal, buyer or seller?

The Seller is required to file Form 27C on the E-filing portal.

• How can the buyer furnish the declaration to the seller under section 206C(1A) for obtaining goods without collection of tax?

The Buyer is required to manually fill Part-I of form 27C and submit it to the seller.

• What are the prerequisites for filing of Form 27C?

The following are the prerequisites for filing of Form 27C-

• Seller should have TAN

• TAN of sellers should be active and registered on the e-Filing portal.

• What is the process to file Form 27C on the E filing portal?

Following are the steps to file online Form 27C -

1. Seller to login on Income Tax Portal i.e. www.incometax.gov.in  using TAN as User ID.
2. Navigate to e-file -----> Income Tax Forms ----> File Income Tax Forms ----> Persons not dependent on any Source of Income (Source of Income not relevant) ----> Form 27C.
3. Fill the details in “Part I- Details of the buyers” and “Part II- Details of seller, Attachments and Verification”
4. The seller shall scan and upload part I of the form, received from buyers as attachments under “Part IIDetails of seller, Attachments and Verification” of the online form and proceed for filing Form 27C.

5. Which documents/details are required to file Form 27C on the e-filing portal?

     Following documents/ details are required-

1. Details of the buyers (Name, PAN/Aadhar, Address, Status, email id, Mobile no, Nature of Business, Nature of goods and Purpose of utilizing the goods shall be provided for each Buyer)

• Date on which declaration is furnished

• Date of debiting of the amount payable by the buyer to the account of the buyer or receipt of the amount payable from the buyer in cash or by issue of a cheque or draft or by any other mode

• Self-certified copies of the declaration made by the buyers stating that the goods purchased are not to be utilised for trading purposes.

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