Form 27C: Declaration for Nil tax under TCS

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By Hiral Vakil on March 9, 2019

Form 27C is a declaration form for non deduction of TCS by buyer of goods to the seller. As per the income tax rule, the seller of the specified goods must collect tax from the buyer.

Declaration in Form 27C can be made by the buyer who is a resident in India, and uses purchased goods for the manufacturing, processing or production of goods/ article. Buyer gives a declaration, in duplicate in Form 27C.

A copy of the declaration has to be given to the person collecting tax. And the person collecting this declaration form has to submit the copy to the authorities concerned on or before the seventh day of the following month.

Details required to file Form 27C

Form 27C has two sections that needs to be filed in and signed by both the buyer/ declarant and seller/ collector. Following are the details required:

  • ​Part I: Contains information of Buyer such as Name, PAN, Address, Contact Details, List of goods procured and the purpose towards which the purchase is intended.
  • ​Part II: Contains information of Seller such as Name, PAN, TAN, Address, Contact Details, Date on which declaration is furnished.

Apart from above information, sale receipt of the goods in question also needs to be furnished.

FAQs:

1. Who can not claim lower/nil TCS deduction?

Form 27C can not be used for tax exemption under TCS where goods are being purchased for the purpose of trading.