05 December 2009
Yes. You need both 15CA and 15CB The auditor has to certify that there are no imports on which TDS is applicable. Usually in imports of machinery, there is an element of technical services involved for which charges are paid. This could be for commissioning and installation of equipment or there may be an element of royalty payable for use of a technology or software. It all depends on the transaction and if there are such payments involved in the payment to the vendor, irrespective of whether he has PE or not there is TDS applicable for the FTS component of the transaction. Therefore CA certifies the rate as per DTAA or Income Tax Act if indeed the import involves such a payment. If not then for sale component of transaction (even if the entire transaction is a trade payment) also he will certify that the transaction is a principal to principal transaction and no income is received or accruing to payee in India.
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