15ca & 15cb

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ANKUR (Querist)
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13 April 2016 Is form 15 CA required for payment made to Foreign country by a Partnership firm for Goods taken on rent for setting up of stall in fair in the foreign country, if amount of Rent does not exceed 90000 as per the new conditions applicable from 1st April 2016 ???

ANKUR

ANKUR (Querist)
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13 April 2016 plz sir it's very urgent

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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14 July 2024 As of the latest information available up to my last update in January 2022, Form 15CA and Form 15CB are required for making payments to non-residents or foreign entities, especially if the payment is subject to withholding tax under Indian income tax laws. However, there are certain exemptions and conditions where these forms may not be required.

Here’s how it generally applies to your scenario:

1. **Form 15CA and Form 15CB Requirements:**
- Form 15CA: This form is required for remittances made to non-residents. It is an undertaking by the remitter, and it needs to be filed electronically on the Income Tax Department's online portal.
- Form 15CB: This form is a certificate issued by a Chartered Accountant certifying details of the payment, ensuring compliance with Indian tax laws.

2. **Exemption for Small Payments:**
- Payments made to non-residents for specified transactions or up to a certain threshold may be exempt from the requirement of obtaining Form 15CA/Form 15CB. As of the last known update, payments up to ₹ 50,000 per transaction were exempt from this requirement.
- However, you mentioned a threshold of ₹ 90,000. If this is a recent change effective from April 1, 2016, and it is applicable, payments up to ₹ 90,000 may now be exempt from the requirement of Form 15CA/Form 15CB.

3. **Your Scenario - Rent for Goods Taken on Rent:**
- If a partnership firm is making a payment to a foreign entity for renting goods (in your case, setting up a stall at a fair in a foreign country), and if the amount of rent does not exceed ₹ 90,000, it may be exempt from the requirement of Form 15CA/Form 15CB under the new conditions.

4. **Verification and Compliance:**
- It’s important to verify the latest provisions and exemptions applicable at the time of your transaction. The exemption limit of ₹ 90,000 for Form 15CA/Form 15CB needs to be confirmed based on current regulations and notifications issued by the Income Tax Department.

5. **Consultation:**
- Given the specificity and potential changes in regulations over time, it is advisable to consult with a Chartered Accountant or tax advisor who can provide guidance based on the most recent updates and ensure compliance with Indian tax laws.

Always ensure that any exemption claimed is supported by the relevant provisions and documentation to avoid potential issues with tax authorities.

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