Latest Query & Reply

ONE OF OUR CLIENTS IS A MANUFACTURER OF BRASS PARTS. OUR CLIENT HAD SOLD BRASS SCRAP TO SOME OF MANUFACTURERS AND TRADERS BUT NOT DEDUCTED AND COLLECTED TCS FOR THE ASSESSMENT YEAR 2017-18. ALL ARE ASSESSED TO INCOME-TAX. NOW WE CAN OBTAIN FORM NO 27C AND FILE IT TODAY.

Reply

To claim exemption u/s 206(1A) of the income tax where the assessee need not to collect TCS from the sale of scrap if the buyer uses it for manufacturing or processing or producing some other things (not for trader) or articles. For this the buyer has to  give Form 27C to the seller.

Rule 37C(3) prescribes a time limit till the seventh day of next month in which declaration is furnished to the seller, within  such time period the seller has to deliver one copy of the declaration to the Chief Commissioner or Commissioner. 

If filing is delayed, assessee can file it (Form 27C) with condonation of delay.