CPC-TDS Procedure: e-Filing of CA Certificate (Form 27BA) for Rectification of TCS Defaults

CPC-TDS Prescribes Procedure for e-filing/ furnishing and verification of CA Certificate in Form 27BA for removing of default/ rectification of Short Collection/ Non Collection of Tax at Source (TCS)

CBDT (DIT-Systems) Notification No. 12/2016 dt. 8 Dec. 2016

1. As per first proviso to sub-section (6A) of section 206C of Income-tax Act, 1961, any person, other than a person referred to in sub-section (1D), responsible for collecting tax in accordance with the provisions of this section, who 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 shall not be deemed to be an assessee in default in respect of such tax if such 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 under the first proviso to sub-section (6A) of section 206C shall be furnished in Form 27BA to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) in accordance with the procedures, formats and standards specified under sub-rule (2), and verified in accordance with the procedures, formats and standards specified under sub-rule (2).

3. In exercise of the powers delegated by the Central Board of Direct Taxes (Board) under sub- rule (2) of Rule 37J of Income-tax Rules, 1962 the Principal Director General of Income-tax (Systems) hereby authorizes the Income-tax authorities mentioned at Col. No. 2 to receive the form-type mentioned in Col. No. 2 to be filed in the mode specified at Col. No. 3 for the assessment years mentioned at Col. No. 4 and pertinent to defaults under Sections of the Act mentioned at Col. No.5:

12345
Authorised A .O.Form TypeMode of furnishing FormA.Y.To be used exclusively for defaults under section
Field Assessing Officers (TDS)*27BAPaperUp to  &  including 2016-17206(6A)
CPC-TDS27BAElectronic**Up to  &  including 2016-17206CB
CPC-TDS27BAElectronic**Including & from 2017-18206CB and/or 206(6A)

* The AO should ensure that interest on non-collection of the whole or any part of the tax or failure in payment after collection as required by or under this Act shall be paid before furnishing the statement in accordance with the provisions of the Act.

** Furnishing of Form 27BA in electronic shall be enabled with effect from 15.01.2017

4. The procedure for electronic filing of Form 27BA is as follows:

4.1 Role of Collector:

StepsPlace of ActionAction
1TRACES Portal

Get Details of Short Collection:Collector needs to submit request to get details of short collection;

2.TRACES Portal

Enter No Collection transactions: Collector needs to enter details of Non- Collection transaction at TRACES, if any and submit transaction details at TRACES in the rows provided for this purpose;

3.TRACES PortalSubmit Request: On submitting request, a Unique Request Number will be generated for further  reference. The Short-Collection and/or Non-Collection request so submitted will be processed by TRACES and the successful transaction will be displayed to the Collector after certain time. A unique DIN* will be generated by TDS-CPC for unique Short Collection transaction. Similarly a unique Alpha-Numeric String (combination of TAN, PAN and F.Y.) will be generated for No-Collection transaction. Both of these unique numbers and strings will be displayed after successful processing by TRACES. These unique DINs and Alpha-Numeric Strings will be communicated electronically to E-Filing Portal and available for further action by Collector;
4.OfflineThe Collector will communicate the DINs and/or Alpha-Numeric Strings generated in step no. 3 for each of the Short-Collection and/ or Non-Collection transactions 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 option for which request for Form 27BA is to be submitted.

Locate No Deduction 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.

6E-Filing PortalAuthorize Membership Number of Accountant**: 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;
7E-Filing PortalCertification from Authorized  Accountant:  On successful authorization by Collector, the Accountant 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.
8E-Filing PortalSubmit Digitally signed Form 27BA: Once registered Accountant/Accountants certify DINs and/or Alpha-Numeric Strings, Collector needs to digitally sign the form and submit its final request. Consequently, these submitted records will be shared with the FAOs concerned.
9TRACES PortalView 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 PortalMake payment for Modified Late Collection Interest: Collector needs to pay Late Collection Interest amount, according to the modified computation.

* DIN is unique identification number of single buyer row.
** Accountant shall have meaning assigned to it in the Explanation to sub-section (2) of section 288 of the I.T. Act, 1961

4.2 Role of Accountant at E- Filing

i) 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-Collection and/or Non-Collection; ii) Receive DINs and/or Alpha-Numeric Strings with respect to each of the Short- Collection and/or Non- Collection from the Collector; iii) After being so authorized  by Collector and  upon receiving  DINs and/or Alpha-Numeric Strings from Collector; login to E- Fling Portal with Accountant credentials; iv) Use DINs and/or Alpha-Numeric Strings to identify the buyer rows which are to be verified; v) Complete Annexure A to Form 27BA w ith respect to the concerned Buyer; vi) Submit the Annexure A so completed by digitally signing it.

4.3 Role of e-filing:

For CollectorValidationsTRACES
1. Provide view of Short- Collection and/or Non-Collection transactions to Collector as communicated to E-Filing Portal electronically by CPC-TDS; 2. Allow Collector to locate and select Short-Collection and/or Non-Collection transactions and authorize Accountant(s) with respect to each of these transactions by entering membership number of Accountant(s); 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 ssessment.Share digitally signed Form 27BA with CPC-TDS

4.4 Role of TRACES

For CollectorBackend Processing
1. Display identified Short-Collection transactions for viewing of Collector; 2. Provide option of adding Non-Collection transactions to Collector; 3. Provide DIN and/or Alpha-Numeric String for each transaction after submission by Collector as per Step 3 of Para 1; 4. Display updated status of submitted Form 27BA as received from E-Filing PortalProcessing the request: Once Collector submits request of Form 27BA, TDS-CPC will reprocess the statement and Short Collection will be modified.

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