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Form 27C: Declaration of exemption under TCS

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Hiral Vakil

TDS
TDS Returns & Forms
Last updated on April 26th, 2021

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:

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

FAQs

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.

How do I download Form 27A TDS?

Form 27A is generated by TDS/TCS FVU (File Validation Utility). Form 27A is automatically created upon the successful generation of the FVU file of TDS/TCS Return. Form 27A contains particulars of Name and TAN of deductor and control totals of ‘amount paid’ and ‘income tax deducted at source’.

Is it mandatory to file nil TDS return?

As per the Income Tax Act, 1961 and the Income Tax Rules, it is not mandatory to file a NIL TDS Return.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Yes, in case you have not deposited TDS by the due date, the following penalties might be applicable:

    • Interest (if you do not deposit the TDS amount in time)

    • Late filing fee (if you do not file by the deadline)

    • Penalty (if TDS is not filed within one year of the due date)

    Hope this helps!

  2. Hey @HarishMehta

    Form 24, 27 and 27E are forms to file TDS/TCS returns:

    • Form 24 is to file TDS return detailing Salary Payments

    • Form 27 is to file TDS return detailing Foreign or NRI payment other than salary

    • Form 27E is to file TCS returns

    Hope this helps!

  3. Hi @KrishnaAgarwal

Continue the conversation on TaxQ&A

2 more replies

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