Form 27 C Rule 37 C

This query is : Resolved

Rajpreet Singh (Querist)
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05 October 2008 Dear Sir,
Can a consolidated Form 27 C for a month for all the invoices during that month can be obtained from buyer for no collection of Tax. If buyer doesnt submit Form 27C before 7th day of next month then how seller of scrap can comply with section 206 to deliver the forms to commissioner

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 October 2008 If the form is not given purposefully file a writ mandamus,compelling the buyer to issue the form,before a court of law. The case law Lakshmi Narayan Engineers Vs secretary,KSEB & anr (1989) 178 ITR 230 (ker),though delivered in a different IT section,may help you in this regard.

Rajpreet Singh

Rajpreet Singh (Querist)
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07 October 2008 Dear sir,
Can a consoldiated form 27c obtained from the buyer for all the invoices raised during a particular month, or it should only be obtained for each invoice seperately

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2024 Form 27C is typically obtained for each transaction or invoice separately rather than in a consolidated manner for all invoices raised during a particular month. Here’s why and how it should be obtained:

### Form 27C Overview:
Form 27C is a declaration provided by the seller to the buyer stating that their income is below the taxable limit and hence no tax needs to be deducted at source under Section 206C of the Income Tax Act, 1961. It serves as a proof that the buyer is not required to deduct TDS from the payment made to the seller.

### Procedure for Obtaining Form 27C:
1. **Transaction-specific Declaration**: Form 27C should ideally be obtained for each transaction or invoice separately. This ensures that there is clarity and specificity regarding which transaction the declaration pertains to.

2. **Details Required**: The form includes details such as the seller’s name, address, PAN, nature of transaction, and the value of goods or services involved. These details are typically specific to each invoice or transaction.

3. **Verification**: The buyer should verify the authenticity of the details provided in Form 27C. It’s important to ensure that the seller meets the criteria for not deducting tax at source.

4. **Documentation**: Keep a copy of Form 27C along with other transaction-related documents for record-keeping and audit purposes.

### Consolidated Form 27C:
While it might seem convenient to obtain a consolidated Form 27C for all invoices raised in a particular month, this practice may not be in line with the intended purpose of the form. Each Form 27C should accurately reflect the specific transaction it pertains to, ensuring that there is clarity and compliance with tax laws.

### Conclusion:
To comply with the provisions of Section 206C and to avoid any potential issues during tax assessments or audits, it is advisable to obtain Form 27C separately for each invoice or transaction where tax deduction at source is not applicable. This approach ensures transparency and correctness in tax compliance processes.

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