Introduction

Form 27D  is a certificate for Tax Collected at Source (TCS) u/s 206 of Income Tax Act, 1961. It is the certificate for the return filed in Form 27EQ.

The filing of Form 27D needs information on both PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number). Form 27D is filed by a dealer of goods, not by the buyer.

Each seller has to collect tax on various goods from the buyer. A tax collected based on the nature of the goods, not on the mode of payment.

Tax is not to be paid on the goods noticed below when these goods are used payable.

  • Alcoholic liquor for human use;
  • Tendu leaves;
  • scrap.
  • Timber acquired from the forest under lease or from any other forest which is not on the lease;

Eligibility

Seller

A party that creates offers or contracts to make a sale to an accurate or a potential purchaser. It does involve:

(a) Local Authority

(b) The Central and State Governments

(c) Co-operative Society

(d) Statutory Corporation or Authority

(e) Company

(f) Firm

(g) Individual or Hindu Undivided Family (HUF) is covered under Section 44AB (compulsory audit)

Buyer

An individual who purchases in any sale, auction,  any other way, that involves specified goods/items is named as the purchaser. It does not involve:

(a) Central/State Government

(b) Public Sector Company

(c) A club

(d) Embassy, High Commission, Legation, Consulate, and Trade representation of a foreign state

(e) A purchaser in the retail sale of such goods purchased for personal utilization.

Scrap

Waste from producers or mechanical matters that is not in use due to cutting-up, breakage, wear, and other reasons.

Exemption

TCS is exempted in the following:

  • If goods are bought for personal use.
  • The purchaser who buys particularized goods for producing, processing, or production and not for the reason of trading any tax would be collected. In such a case, the buyer complies with a declaration in Form 27C to Seller.

Deposits & Certificates

  • The Seller deposits the TCS amount in Challan 281 within 7 days from the last day of the month in which tax is deposited.
  • Form 27D is given to the purchaser (a TCS Certificate).
  • It should include the name of the Seller & Buyer, TAN, and PAN, the total tax deposited by the seller, date of collection, the rate of tax used to it & other such particulars as may be described before.

Due Date 

The Seller who has collected and deposited the TCS Amount, Quarterly Return needs to be filed in Form 27EQ in Electronic Format in the NSDL format. After filing the return for TCS, a certificate Form 27D is given after 15days.

form 27D

In case you are confused about TDS Return Filing as a deductor, feel free to consult the experts at LegalRaasta. You can get comprehensive assistance with our TDS Return Filing Software which supports TDS on Salary payments (Form 24Q), Rent, Interest, Commission, and other Non-salary transactions (Form 26Q), NRI (Form 27Q)and TCS (Form 27EQ).