09 February 2013
AN INDIAN COMPANY HAS PAID RS. 300000/- (WITHOUT DEDUCTING TDS) TO A NON RESIDENT COMPANY BASED IN SINGAPORE WITH NO PERMANENT ESTABLISHMENT IN INDIA FOR THE CONFERENCE EXPENSES. WHETHER THE COMPANY WAS LIABLE TO DEDUCT TDS ON RS. 300000/-? IF YES, THEN WHAT WOULD BE ITS CONSEQUENCES?
10 February 2013
For a complete and correct answer you should have mentioned as for what purpose the amount has been paid.
If it is against some purchases then there is no TDS.
In case it is of income (of Singapore Co) nature like Rent or Professional Service then TDS should have been deducted.
Still the major point is that there is a rule that Bank will release foreign currency after compiling with procedure of Form 15CA and 15CB. This procedure is done to ascertain as what amount is to release after TDS. So how you happen to pay to Singapore Company.
10 February 2013
Honable Mr. Bajaj is correct, however further, if such payment is made in Singapore for Conference in Singapore, then nothing shall be deducted.
11 February 2013
Form 15CB does not mean that you need to deduct TDS. It is certificate from CA providing nature of payment, jurisdiction of payment, and TDS deductible or not.
As per my view, if Income was not accrue or arise in India, then No TDS is deductible.
11 February 2013
If the Indian Co. has already remitted the payment and submitted form 15CB/CA to Bank, then an appropriate stand for non deduction of TDS(including obtaining NO PE CErtificate and TRC)must have been taken at the time of issue of Form 15CB.
Now the query that whether TDS was deductable seems out of context.
CAclubindia
