25 July 2024
Form 27C is used for furnishing information to the Income Tax Department regarding non-deduction of tax at source by a buyer from a seller, under Section 206C of the Income Tax Act, 1961. Here’s how you should collect and submit Form 27C:
### Manner of Collecting Form 27C: 1. **Who Should Collect**: The buyer (purchaser) who has not deducted tax at source under Section 206C(1) from the seller.
2. **When to Collect**: Form 27C should be obtained from the seller at the time of receipt of goods or services. It serves as a declaration from the seller that their income is below the taxable limit and hence no tax needs to be deducted at source.
3. **Content of Form 27C**: It includes details such as the name, address, and PAN of the seller, as well as the nature and value of the transaction.
4. **No Need to Attach Invoice**: Form 27C does not require you to attach an invoice copy. It is a separate declaration form provided by the seller to indicate that tax deduction is not required.
### Submitting Form 27C: 1. **To Whom to Submit**: Form 27C should be submitted to the Income Tax Department or the Assessing Officer within whose jurisdiction the buyer (deductor) falls.
2. **Online Submission**: In many cases, Form 27C can be submitted electronically through the Income Tax Department’s e-filing portal.
3. **Physical Submission**: If required, the form can also be physically submitted to the Income Tax Department or the Assessing Officer.
4. **Retaining Records**: The buyer (deductor) should retain a copy of Form 27C along with other relevant documents for future reference and audit purposes.
### Important Points to Note: - Ensure that Form 27C is duly filled and signed by the seller. - The buyer should verify the authenticity of the details provided in Form 27C. - If the seller’s declaration is found to be false or incorrect, the buyer may be liable for consequences under the Income Tax Act.
In summary, Form 27C is a declaration form used to certify that tax has not been deducted at source by the buyer from the seller. It should be collected from the seller at the time of transaction and submitted to the Income Tax Department or Assessing Officer as per the prescribed procedures. No invoice copy needs to be attached with Form 27C.
CAclubindia
