Meaning of Form 27C

Form 27C declares under the Income Tax Act; it is a declaration form in which the buyer of the product informs the seller not to deduct TCS.

The concept of a tax collected at the source is that the seller collects the tax from the buyer of goods in the specified transactions. If a buyer of those goods does not want to pay the tax, then he can submit Form 27C and will get exemption. Let''s move on and find out more about Form 27C.

Form 27C is used for declaring by the buyer of goods that they will not deduct TCS while making any payment to the seller. The seller is liable under the Income Tax rule to collect tax from the buyer.

To avoid this, the purchaser may declare in Form 27C if he is a resident of India and uses the purchased commodities for the purpose of manufacture, processing or production of goods or articles. The purchaser furnishes a duplicate declaration in Form No. 27C.

A copy of the statement shall be provided to the person to whom the tax is collected. In addition, the person collecting this statement is required to furnish a copy to the appropriate authorities on or before the 7th day of the following month.

Conditions Associated with Form 27C

Form 27C can be used by the purchasing dealer only when the goods purchased by him are to be utilized for the manufacture or production of other goods, articles, or things. When the goods are purchased with the motive of trading, tax exemption cannot be claimed using Form 27C. The following are eligible purchasers, eligible sellers, and categories of goods, which are subject to TCS and can be dealt with by using Form 27C:

• Eligible sellers
• Qualified buyers of goods
• Eligible buyers Goods

Form 27C Download

For downloading Form 27C, one requires carrying out some facile steps given below. These are as follows:

1. Log on to the official website of the Income Tax Department of India that is incometaxindia.gov.in.
2. Click the option available named ""Downloads"".
3. Use the drop-down menu: ""Income Tax Forms"". Scroll down to get a compilation of all forms applicable to the taxpayer. Key in the search bar: Form 27C. You will now be able to download the form in either fillable format, i.e., Word document, or PDF format.

Seller, hence, in your case, you must be quite prudent on filing of Form 27C online. Please have a look at the numbered instructions given below.

1. Open the site of income tax, www.incometax.gov.in. Log on with your TAN as user ID.
2. Now click e-file and choose the e-filing option.
3. Then click the ""Income Tax Forms"" heading and select ""File Income Tax Forms"".
4. Tick ""Persons not dependent on any Source of Income"" and click Next to Form 27C.
5. Fill in all the details available in Part I (all the details of the purchaser) and Part II (all the details of the seller).
6. Kindly scan the Form 27C Part I received from the purchaser and upload the same in the attachment space of Part II.
7. Once you have provided all the necessary details, you can file Form 27C and receive deductions for TCS.

Key Factors Needed to File Form 27C

Following are the key things you need in order to file Form 27C:

• Buyer''s information declaration: name, status, PAN or official Aadhar card no, mobile no, email id, type of products, nature of business and purpose for which the commodities are to be used.
• Date of issue of declaration of Form 27C.
• Payment date: this is the date the buyer''s account is charged with the amount still unpaid, or when the person pays up the due amount in cash, by submitting a check, or through a draft.
• Attested copies of the declaration of the buyer in Form 27C. The declaration from the buyer must state, clearly, the purposes for which the items are bought but shall exclude usage for any trading of commercial nature.

There you are!

That''s all you need to know about Form 27C.