What is Form 27C?

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form 27c

Form 27C is a document that aids the taxpayer in getting tax exemption from the tax deducted at source/ tax collected at source. This form can be used by buyers as well as sellers for the sale and purchase of all the Goods mentioned in the Income Tax Act.

Who can use Form 27C?

Form 27C is filed by only by the buyer of goods, if the goods that are being purchased are intended for production, manufacturing or processing of further goods, articles or things. In case, the goods are being purchased for the sake of trading, Form 27C will not be applicable for the tax exemption. The admissible buyers, sellers and list of goods that fall under the provision of Income Tax Act, 1961 foe the exemption of tax collected at source or TCS and can deal with Form 27C are mentioned-below: –

Admissible Sellers

  • Central Government
  • State Government
  • Local authorities
  • Statutory corporation or authorities
  • Companies
  • Firms
  • Co-operative societies
  • Individual or Hindu Undivided Family under Section 44AB

Admissible Buyers

Any entity obtaining goods or rights to receive goods in any sale, auction, tender or any other mode, except the ones mentioned-below: –

  • Public Sector Companies
  • Central Government
  • State Government
  • Embassy of High Commission, Consulate and other Trade Representation of a Foreign State
  • Any Club, such as social clubs, sports clubs and similar entities

Goods

  • Tendu leaves
  • Timber obtained from a forest lease
  • Timber obtained from any means other than a forest lease
  • Any other forest produce, except Timber or Tendu
  • Alcoholic liquor for human consumption (also Indian Made Foreign Liquor (IMFL))
  • Scrap (Waste and scrap from the manufacture or mechanical working of materials, usable as such because of breakage, cutting up, wear and tear or other reasons)
  • Licensing or leasing of Parking Lot, Toll Plaza etc
  • Mining and quarrying

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