Form 15cb/ca for payment to foreign branch

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013 Dear Experts,

Please advise

1. Will TDS attract to payment made to foreign Branch for meeting recurring expenses?

2. As the Foreign Branch is Resident, then why 15CB/CA is required?

Sanket

Sanket (Expert)
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18 October 2013 it is relevant to note that ITAT has not
specifically discussed exclusion provided under
clause (b) of Sec 9(1)(vii) . The clause excludes
fees payable in respect of services utilised in a
business or profession carried on by such person
outside India or for the purposes of making or
earning any income from any source outside India
from the definition of technical services. It could
be contended that activities of branch would fall
under this exclusion and hence, TDS is not
applicable.
Even practically, it would be very difficult to apply
TDS provisions under IT Act to the foreign
branches in respect of their overseas operations/
payments.

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