issue of form 3cb

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2010 Dear sir/ madam

My query is related to issue of form 3cb. One firm imports goods form x country from y , now today they wants to remit money in the y a/c of that country, the banker has asked for form 3cb, whether any tds will come in payment to that y, because here only import of goods is there, apart from that no services rendered, will this attract sec 195(2) or not? please clarofy me.

Ankit Talsania

Ankit Talsania (Expert)
Follow

09 July 2010 If remittance is only respect of purchase of goods and the recipient is not having PE as per respective DTAA and is not having Business Connection in India as per S.9 of the Act, then no need to deduct tax at source u/s 195 of the Act.

Once the income of recipient is not chargeable to tax in India, s.195(2) cannot be invoked.

Prasad Production Ltd. 129 TTJ 641 (Chennai)(SB)