Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Friday, December 9, 2016

Furnishing and Verification of Form 27BA for Removing of Default of TCS - New Procedure

Furnishing and Verification of Form 27BA for Removing of Default of Short Collection and/or Non Collection of Tax at Source 

 CBDT has laid down the new Procedure for furnishing and verification of  Form 27BA for removing defaults of short collection or non collection of tax at source and for removing mismatch.
Section 206C of Income Tax Act if, any person, responsible for collecting tax fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee-
 (i) has furnished his return of income under section 139;
(ii) has taken into account such amount for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the person furnishes a certificate to this effect from an accountant in such form as may be
prescribed.
2. As per sub-rule (1) of Rule 37J of Income-tax Rules, 1962, the certificate from an accountant section 206C shall be furnished in Form 27BA in accordance with the procedures, formats and verified in accordance with the procedures, formats.
3. The procedure for electronic filing of Form 27BA is as follows:
1.1 Role of Collector
STEPS
PLACE OF ACTION
ACTION
1
TRACES Portal
Get Details of Short Deduct ion: Collector needs to submit request to get details of short Collection.
2
TRACES Portal
Enter No Collection transactions: Collector needs to enter details of No-Collection transaction at TRACES
3
TRACES Portal
Submit Request: On submitting request, a Unique Request Number will be generated and A unique DIN will be generated by TDSCPC for unique Short Collection transaction. Similarly Unique Alpha-Numeric String (combination of TAN, PAN and F.Y.) will be generated for No-Collection transaction. These unique DINs and Alpha-Numeric Strings will be communicated electronically to E-Filing Portal and available for further act ion by Collector.
4
Offline
The Collector will communicate the DINs and/or Alpha-Numeric St rings generated in step no. 3 for each of the Short-Collection and/or Non-Collection transact ions to the accountant identified for certifying Annexure A and obtain the membership no. of such accountant to be used in step no. 5.
5
E-Filing Portal (Login as Collector)
locate DIN on which Form 27BA effect is to be given : Locate and select relevant DIN in menu driven opt ion for which request for Form 27BA is to be submitted.

locate No Collection Transactions on which Form 27BA effect is to be given :
locate and select No-Collection transaction for which request for Form 27BA is to be submitted.
6
E-Filing Portal
Authorize Membership Number of Accountant [4] : Collector, after ascertaining
the membership number of the accountant who is to certify Annexure A of Form 27BA, needs to authorize such accountant by entering his membership number in respect of each of the Short -Collection and Non-Collection transactions(in one or more sessions) and submit these authorizations.
7
E-Filing Portal
Certification from Authorized Accountant : On successful authorization by Collector, the Account ant so authorized on E-Filing Portal may fill in the relevant details in Annexure A to Form 27BA with respect to the buyer  in question and certify by digitally signing Annexure A. The details of unique DINs
and Alpha-Numeric Strings will become visible to the authorized
accountant(when he logs into his own account as a registered accountant on E-Filing Portal) only when Collector has authorized such an accountant with respect to any Short-Collection and/ or Non-Collection transaction.
8
E-Filing Portal
Submit Digitally signed Form 27BA : Once registered Accountant/Accountants certify DINs and/or Alpha-Numeric St rings, Collector needs to digit ally sign the form and submit its final request . Consequently, these submitted records will be shared with the FAOs concerned.
9
TRACES Portal
View Modified Status of default : Once request has been processed,
short collection will be re-calculated and Late collection Interest will be generated accordingly, which can be viewed by Collector.
10
NSDL\TRACES Portal
Make payment for Modified Late Collection Interest : Collector needs to pay Late collection Interest amount, according to the modified computation.

4.2 Role of Accountant at E-Filing:
1.       Accountant has to get himself registered at E-Filing Portal and share his membership
number with the collector desiring to authorize him with respect to Short - Collect             ion and/o r Non- Collection.

2.       Receive DINs and/or Alpha-Numeric St rings with respect to each of the Short- Collection and/ or Non- Collect ion from the Collector.

3.       After being so authorized by Collector and upon receiving DINs and/or Alpha-Numeric
St rings from Collector; login to E- Fling Portal wit h Accountant credentials.

4.       Use DINs and/or Alpha-Numeric St rings to identify the buyer rows which are to be verified.
5.       Complete Annexure A to Form 27BA with respect to the concerned Buyer.

6.       Submit the Annexure A so completed by digitally signing it.

4.3 Role of e-filer:
For Collector
Validations
TRACES
1.   Provide view of Short-Collection and/or Non-Collection transactions to Collector
 2.  Allow Collector to locate and select Short-Collection    and/or Non-Collection transactions  
3.     Allow Accountants so authorized to view Annexure A to Form 27BA on the basis of DIN and/or Alpha-Numeric String; complete the Annexure; and submit it by digitally signing it.
4 Allow Collector to view Form 27BA including Annexure A to Form 27BA so submitted by authorized Accountant(s) and submit this Form 27BA by digitally signing it.
Check mandatory compliance :
ITR of buyer (PAN) should have been filed u/s 139 and no demand should be payable at the time of assessment.
Share digitally signed Form 27BA with CPC-TDS.
4.4 Role of TRACES:

For Collector


Backend Processing
1.     Display identified Short-Collection transactions
2.     Provide option of adding No-Collection transactions
3.     Provide DIN and Alpha-Numeric String
4.     Display updated status of Form 27BA
 Processing the request: Once Collector submits          request of Form 27BA, TDSCPC will reprocess the statement and Short Collection will be modified.


Contributed by Suhasini CA Finalist

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