04 August 2012
Dear Sir, Our company is having contract for purchase of Iron ore, Coal, Scrap and utilizing for production of sponge iron. The seller is asking for 27c. What is the procedure to be followed? How to get declaration? is there any time limit? is there any specific form for company? please inform.
You should give deceleration in form 27C to the seller to avoid collection of Tax by seller in duplicate. You Can fill the form 27c itself and submit to the seller as per rule 37c. The Time limit is applicable for seller to submit the deceleration within 7 days of the month in which deceleration is furnished to him.
Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount67 from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax: 68[TABLE Sl. No. Nature of goods Percentage (1) (2) (3) (i) Alcoholic Liquor for human consumption One per cent (ii) Tendu leaves Five per cent (iii) Timber obtained under a forest lease Two and one-half per cent (iv) Timber obtained by any mode other than under a forest lease Two and one-half per cent (v) Any other forest produce not being timber or tendu leaves Two and one-half per cent (vi) Scrap One per cent] 68a[(vii) Minerals, being coal or lignite or iron ore One per cent:] ( Added by FA 2012 )
CAclubindia
