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Form 15cb query!!!!!!

CA. Kunal Lakhotia (ACA) (1006 Points)

29 January 2013

My client has to make a remittance abroad for the training and travelling expenses of the foreign company, so do I need to furnish my client Form 15CB, or should my client apply to his AO for determination of amt. as whole amt. is not chargeable to tax. Please reply asap.

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8 Replies

Rahul (CA Practice ) (1818 Points)
Replied 29 January 2013

If it is a reimbursement, then there is no need to apply to AO under section 195(2), provided you have all the relevant supporting. For Example, if the remmitance is for USD 100, then bills should be available for USD 100, No markup should be added on that amount.

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Lokesh Poddar (Executive) (55 Points)
Replied 29 January 2013

Withholding tax is applicable on training expenses, Reimbursement of travelling expenses is not liable to tax. Form-15CB shall be incorporated while remittance along with Form-15CA. Tax can be deposit on 7th of the next month.

CA Prashant Gupta (DGM (F & A)) (14068 Points)
Replied 29 January 2013

give your client 15CB. as it is reimbursement no TDS applicable

then submit 15CA online

CA. Kunal Lakhotia (ACA) (1006 Points)
Replied 29 January 2013

client doesnt have the Travel Receipt, If he makes the payment without deducting TDS now and gets the receipt later from foreign company, then its ok??