What Is Form 27C?
Form 27C is a declaration form that a buyer can submit to a seller to claim exemption from Tax Collected at Source (TCS) on the purchase of specified goods, when the goods are being used for manufacturing, processing, or production rather than for trading purposes.
Why Form 27C Exists
TCS is applicable under Section 206C of the Income Tax Act on the sale of certain specified goods (like scrap, timber, or minerals); however, buyers who will use these goods for manufacturing or production (rather than reselling them) can be exempted from TCS by submitting a valid Form 27C declaration to the seller.
Relevance to HR and Corporate Functions
This form is primarily relevant to procurement, finance, and taxation teams handling raw material purchases rather than core HR payroll functions; it's included in a comprehensive HR glossary primarily because HR professionals in manufacturing or industrial sectors may encounter cross-functional awareness of such compliance forms during broader statutory compliance training or audits.
How Form 27C Is Used
The buyer submits the completed Form 27C declaration to the seller before or at the time of purchase; the seller must then furnish this declaration to the tax authorities, and upon valid submission, TCS is not collected on that specific transaction.
Form 27C: Frequently Asked Questions
Who is eligible to submit Form 27C?
Is Form 27C relevant to typical HR compliance work?
This glossary entry is for general information and reflects common HR practice in India at the time of writing. Statutory thresholds, rates and deadlines change — verify against the latest official notifications or consult a qualified legal or tax advisor before acting.