Advance import payments

This query is : Resolved

Fenil Shah (Querist)
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04 June 2015 Are regular importers of goods required to submit Form 15CA/CB to the bank where the value of imports does not exceed $100,000 ?

What other documents are required to be submitted? Bill of Entry??

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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12 June 2015 Where the amount exceeds US $100,000.

Section 195 of the Income Tax Act 1961 dealing with payments to non-resident has been amended with effect from 1-6-2015. As per the amended section 195(6) CA certificate in form 15-CB is required to be obtained in all the cases of payments to non-resident. Such certificate shall be required to be obtained even in case the amount paid in not chargeable to tax in India. Also it is mandatory for the payer to file an online Form 15-CA.

Further, New section 271-I has been inserted with effect from 1-6-2015 providing for a penalty of Rs. 1,00,000/- for non furnishing or furnishing of wrong information by the payer in form 15-CA.

Documents
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Information to be required from the client
A Details of Remitter

1. Name of the Remitter

2. Address of the Remitter

3. PAN of the Remitter

4. Principal Place of Business of the Remitter

5. E-Mail Address and Phone No. Of Remitter

6. Status of the Remitter (Firm/Company/Other)

B. Details of Remittee

1. Name and Status of the Remittee

2. Address of the Remittee

3. Country of the Remittee (Country to Which Remittance Is Made)

4. Principal Place of the Business of the Remittee

C. Details of the Remittance

1. Country to Which Remittance Is Made

2. Currency in Which Remittance Is Made

3. Amount of Remittance in Indian Currency

4. Proposed Date of Remittance

5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)

D Bank Details of the Remitter

1. Name of Bank of the Remitter

2. Name of Branch of the Bank

3. BSR Code of the Bank

E. Others

1. Father’s Name of the Signing Person

2. Designation Of The Signing Person

F a. Form 10f Duly Filled By the Authorised Person Of The Remittee.

b. Tax Residency Certificate From The Remittee (Tax Registration Of The Country In Which Remittee Is Registered)

c. Certificate That The Remittee Does Not Have Any Permanent Establishment In India. This Is Mandatory If The Income Is A Business Income And Not Chargeable To Tax As Per DTAA If There Is No P.E In India.

This Is Required If Any Benefit Under DTAA Is Taken, Whether By Way Of Lower Rate Of Deduction Of Tax At Source Or No Deduction Of Tax At Source As Per DTAA.