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
ITR Filing is important for every
citizen of this country, file your income tax return now and become a
responsible citizen of India.
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