shashank (no) (70 Points)
04 September 2014PLEASE LET ME KNOW THAT WHAT COMPLIANCES THE DEDUCTOR IS REQUIRED TO COMPLY ON DEDUCTION OF TAX SOURCE ON PAYMENTS MADE TO FOREIGN COMPANIES HAVING PERMENENT ESTABLISHMENT IN INDIA AT THE RATES SPECIFIED UNDER THE DTAA?
FURTHER WHAT DOCUMENTS THE FOREIGN COMPANY IS REQUIRED TO PROVIDE TO DEDUCTOR(INDIAN RESIDENT) FOR DEDUCTION OF TDS AT DTAA RATES?
S.K.Batra
(D.G.M - Finance)
(49 Points)
Replied 04 September 2014
In the current case, where Non Resident already has a PE in India, You must obtain the following documents for applying the DTAA Rates for Withholding Tax on Foreign Remittance.
As per the requirement of the Income Tax Act 1961/ RBI guidelines issued to Bankers, request for any foreign remittance to the Bank is required to be supported by a certificate from a Chartered Accountant (Form 15CB) certifying correct deduction of tax there on. Further details of the same is required to be filed online in the prescribed format (ie Form 15CA on website of Income Tax Deptt by applying digital signature of Managing Director.
Hope this clariies...
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