TCS can be totally exempted or fixed at a lower rate under some circumstances.
A declaration by the buyer in Form Number 27C (in duplicate) has to be made for total exemption. The declaration is if the goods listed are to be used for the purpose of manufacturing or processing and not trading. A copy of the declaration has to be given to the person collecting tax.
The person collecting this declaration form has to submit the copy to the authorities concerned on or before the seventh day of the following month.
The buyer (Collectee) can apply to the Assessing Officer (AO) for a lower rate, using Form No.13, subject to the condition that the AO is convinced that the total income of the buyer (Collectee) justifies the lower rate. The AO may issue a certificate, specifying the rate of collection.
'Exemptions or Lower rate of TCS' has been shared with
