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Updated On : July 10, 2025

Form 27C - TCS Certificate

In India, when tax is collected at source (TCS) by a seller on certain transactions, a corresponding certificate must be issued to the buyer. This certificate is known as Form 27C. It serves as crucial proof for the buyer that tax has been collected on their behalf and deposited with the government.

What is Form 27C?

Form 27C is a certificate issued by a person who has collected Tax Collected at Source (TCS). It provides details of the transaction on which TCS was collected, the amount collected, and the details of the collector and collectee. This certificate is vital for the collectee (buyer) to claim credit for the TCS amount when filing their Income Tax Return.

Purpose of Form 27C:

The primary purposes of Form 27C are:

Proof of Collection: It acts as documentary evidence that TCS has been collected by the seller on a specific transaction.
Enabling Credit: The collectee uses this certificate to claim credit for the TCS amount against their final tax liability. This prevents double taxation and ensures proper accounting of taxes paid.
Compliance: It helps both the collector and collectee maintain transparency and comply with the provisions of the Income Tax Act.

Information Contained in Form 27C:

A typical Form 27C includes the following key information:

Collector's Details: Name, address, and Tax Collection and Deduction Account Number (TAN) of the collector.
Collectee's Details: Name, address, and Permanent Account Number (PAN) of the person from whom TCS was collected.
Transaction Details: Description of the goods or services on which TCS was collected, along with the date and value of the transaction.
TCS Details: The rate at which TCS was collected and the total amount of TCS collected.
Challan Details: Reference to the challan through which the collected tax was deposited to the government. This links the certificate to the actual tax payment.
Financial Year: The financial year to which the TCS collection pertains.

Issuance of Form 27C:

The collector is required to issue Form 27C to the collectee after filing the quarterly TCS statement, Form 27EQ, and depositing the collected tax with the government. The issuance deadlines for Form 27C are usually specified after the due dates for filing Form 27EQ. The deadlines for issuing Form 27C generally are:

Q1 (April to June): August 15th
Q2 (July to September): November 15th
Q3 (October to December): February 15th
Q4 (January to March): June 15th

These dates allow the collector to reconcile the collected tax and file the quarterly statement before issuing the certificates. Collectors can access and download Form 27C through the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal, which facilitates the e-filing walkthrough process.

It is important for collectees to ensure that they receive their Form 27C promptly, as it is essential for claiming the correct tax credit. If a collectee is a non-filer of income tax returns, higher TCS rates may have been applied.

FAQs on Form 27C – Declaration for Non-Collection of TCS

What is Form 27C?

It is a declaration by the buyer stating that the purchased goods are for manufacturing or processing, and not for trading, allowing the seller to avoid collecting TCS.

Who can submit Form 27C?

Any resident buyer (excluding companies/firms) purchasing goods for manufacturing, processing, or production—not trading—can submit Form 27C.

Is Form 27C mandatory for TCS exemption?

Yes, without this declaration, the seller is legally required to collect TCS from the buyer, even if the purchase qualifies for exemption.

Is Form 27C applicable under Section 206C(1H)?

No, Form 27C cannot be used to avoid TCS on sale of goods under Section 206C(1H) for transactions exceeding ₹50 lakh annually.

How is Form 27C submitted?

The buyer submits Form 27C to the seller in duplicate. The seller then forwards one copy to the jurisdictional Commissioner of Income Tax (TDS).

What is the timeline to forward Form 27C?

The seller must submit it to the tax authorities within 7 days from the end of the month in which the declaration is received.

Is PAN mandatory in Form 27C?

Yes. Without PAN, the declaration is invalid, and TCS must be collected at higher rates under Section 206CC.

Can companies use Form 27C?

No. Companies and firms are not eligible to submit Form 27C. Only individuals and HUFs purchasing goods for processing/manufacturing can use it.

Which goods are covered under Form 27C?

Scrap, alcohol, tendu leaves, timber, forest produce, coal, iron ore, and similar notified goods under Section 206C(1).

Is a fresh Form 27C required each year?

Yes, declarations are typically valid only for the financial year. Fresh submission is recommended annually or for each qualifying transaction.

What are the consequences of a false declaration?

A false declaration under Form 27C is punishable under Section 277, which may lead to fines or imprisonment.

Under which rule is Form 27C governed?

Form 27C is governed by Rule 37C of the Income Tax Rules, 1962.

Is Form 27C available online?

It must be physically submitted in most cases, but some large organizations offer digital workflows internally for collection and verification.

What is included in Form 27C?

It includes buyer details, nature and purpose of goods, PAN, signature, and verification by both buyer and seller in Part I and Part II.

Can the same form be reused for multiple sellers?

No. A separate declaration is required for each seller and is not transferable between transactions or sellers.

Table of Contents

Form 27C - TCS Certificate

What is Form 27C?

Purpose of Form 27C:

Information Contained in Form 27C:

Issuance of Form 27C:

FAQs on Form 27C – Declaration for Non-Collection of TCS

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