Failure to obtain form 27c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2014 My query is regarding form 27c in timber trade. Due to not much awareness from the income tax department I was not able to obtain form 27c from the buyers and now how do I solve my problem .Cam any one help me .

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2014 Please help me with a solution

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 If you have failed to obtain Form 27C from buyers in the timber trade, you can take the following steps to rectify the situation:

### Steps to Solve the Problem:

1. **Understand the Requirement**: Form 27C is a declaration that buyers in the timber trade are required to provide to you (the seller) stating that they do not have a Permanent Account Number (PAN). This is necessary for transactions where TDS (Tax Deducted at Source) under Section 206C of the Income Tax Act is applicable.

2. **Contact Buyers**: Reach out to the buyers from whom you have not received Form 27C. Explain to them the requirement and request that they provide you with the duly filled and signed Form 27C. Clearly communicate the importance of this form for compliance purposes.

3. **Document the Efforts**: Maintain a record of your communications with the buyers regarding Form 27C. Document all attempts made to obtain the form, including emails, letters, or any other forms of communication.

4. **Consider Legal Advice**: If you encounter resistance or if buyers are unwilling to provide Form 27C, consider seeking legal advice. A tax consultant or lawyer specializing in income tax matters can provide guidance on the specific legal requirements and potential remedies available to you.

5. **Review Alternatives**: In some cases, if buyers are unable or unwilling to provide Form 27C, you may explore alternatives such as deducting TDS at the applicable rate under Section 206C(1) of the Income Tax Act. However, this approach should be carefully considered after consulting with a tax professional to ensure compliance with tax laws.

6. **Rectify Compliance**: As soon as you obtain Form 27C from the buyers, ensure it is correctly filled and signed. Keep a copy for your records and submit it along with your tax filings to demonstrate compliance with TDS provisions.

### Importance of Compliance:

- **Avoid Penalties**: Non-compliance with TDS provisions can result in penalties and legal consequences. It's important to rectify the situation promptly to mitigate any potential penalties.

- **Maintain Good Standing**: Ensuring compliance with income tax requirements helps maintain a good relationship with tax authorities and demonstrates your commitment to regulatory compliance.

By following these steps and seeking appropriate guidance, you can address the issue of not obtaining Form 27C from buyers in the timber trade effectively and ensure compliance with income tax regulations.

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