What is Form 27C?
Form 27C is derived from Rule 37C of the Income Tax rules wherein it has been mentioned that such declaration shall be issued by the buyer to the seller in relation to purchase of scrap stating that such purchase of scrap will be used in manufacturing and not trading and accordingly no TCS shall be collected on same under section 206C.
Relevant extract of rule 37C are as under:
“(1) A declaration under sub-section (1A) of section 206C to the effect that any of the goods referred to in the Table in sub-section (1) of that section are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No. 27C and shall be verified in the manner indicated therein.
(2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax.
(3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub-rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him.
Explanation. — For the purposes of sub-rule (3), the Chief Commissioner or Commissioner means the Chief Commissioner or Commissioner to whom the Assessing Officer, having jurisdiction to assess the person referred to in sub-rule (2), is subordinate.”
FAQ issued by CBDT in relation to online filing of Form 27C on e-filing portal are as under:
Who is required to file Form 27C on E-filing portal, buyer or seller?
The Seller is required to file Form 27C on E-filing portal.
How can buyer furnish the declaration to 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 seller should be active and registered on the e-Filing portal.
What is the process to file Form 27C on E filing portal?
Following are the steps to file online Form 27C-
Step 1: Seller to login on Income Tax Portal i.e. www.incometax.gov.in using TAN as User ID.
Step 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.
Step 3: Fill the details in “Part I- Details of the buyers” and “Part II- Details of seller, Attachments and Verification”.
Step 4: The seller shall scan and upload part I of the form, received from buyers as attachments under “Part II-Details of seller, Attachments and Verification” of the online form and proceed for filing Form 27C.
Which documents/details are required to file Form 27C on e-filing portal?
Following documents/ details are required-
• 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.
What is the due date for filing Form 27C?
Form No.27C should be filed by the seller on or before 7th day of the next following month in which the declaration is furnished by the buyer.
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