Forex Remittance

This query is : Resolved

POOJA SACHDEVA (Querist)
Follow

31 July 2010 Dear sir

I have appoint an agent at Taiwan for Purchasing goods Pay on behalf of a company in India and agree to Pay USD 2500 per month but when i send that remittance at bank they ask for 15cb form for tds exemption problem is that when we remit the amount in other countries the TDS is exempted as per Article 7 due their P\E is not in India. but in case of Taiwan India have not any treaties with Taiwan under DTAA. So kindly you can guide me is their any way so i can remit that amount without deducting TDs

Thanks for Reply

But this payment is not for purchase, is for commission because the person is an agent not consignor

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

31 July 2010 FOR PURCHASE OF GOODS, NO NEED TO DEDUCT TDS. COLLECT 15CB FROM ANY CHARTERED ACCOUNTANT IN PRACTISE PROVIDED YOU SHOULD HAVE TO SHOW THE INVOICE COPY AND SUBMIT TO THE BANK WITH 15CA.

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
Follow

31 July 2010 Both 15CA & 15CB to be submitted to bank.

POOJA SACHDEVA

POOJA SACHDEVA (Querist)
Follow

31 July 2010 Thanks for your reply sir

But in this case we pay commission to agent against form A2 not payment of consignor or payment of material

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

31 July 2010 then you have to deduct tds@10%
and if your agent does not have PAN then deduct @20%.

POOJA SACHDEVA

POOJA SACHDEVA (Querist)
Follow

31 July 2010 But my CA told for TDS 30% & This is double taxation for that agent

POOJA SACHDEVA

POOJA SACHDEVA (Querist)
Follow

31 July 2010 This deduction is not for India

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

31 July 2010
Your ca is going to be on safe site.
i think you should consult with your ito regarding confirmation of rate.
But in my openion it should be 10%

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now