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TDS on foreign remmitances and 15CA/CB

Tax queries 2486 views 1 replies

Hemank Deshpande

Proprietor

32 Points Posted on 06 April 2010

Can someone enlighten on following issues related to Remittances abroad and certificates in form 15CA/15CB

1. Is the Form 15CA/CB to be uploaded by assessee or AD/Banker or CA?

2. In case of shipping companies based abroad do they have to take PAN mandatorily?

3. The assessee do not deduct tax on Remittances for subscriptttttions and services like satellite communications, but the banker/AD has insisted on certificate in 15CA/CB is the process correct?

Regards

Hemank

Replies (1)

Chintan Shah

534 Points Posted on 06 April 2010

Dear Hemank,

Rule 37BB reads as under....

"1) The information under sub-section (6) of section 195 shall be furnished by the person responsible for making the payment to a non-resident, not being a company, or to a foreign company. after obtaining a certificate from an accountant as defined in the Explanation to section 288 of the Income-tax Act, 1961."

Hence it is the assessee who has to upload the information prescribed i.e Form 15CA after receiving the CA's report in Form 15CB.

In case of shipping companies abroad it is not mandatory to take PAN in India. They can have an authorised representative who can be assessed in such capacity on behalf of the shipping companies abroad.

Where the payment which has been made is itself out of the purview of section 195 (1) than the question of furnishing information of such payment does not arise. The view taken by the banker is not tenable in law...