Form 15ca cb and TDS on paying membership fee to US company

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A sole proprietorship company is seeking clarity on whether Tax Deducted at Source (TDS) applies when paying a $5,000 membership fee to a US-based company for access to insurance industry documents. The bank suggested using code S1099 for remittance. The consensus is that TDS is not applicable for such membership fees, and therefore, Form 15CB is not required. However, Form 15CA should still be filed.

varun chopra

varun chopra (Querist)
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21 January 2021 My bank ICICI is confused if there will be a Tds deduction if we have to pay US $5000 as the fee to a USA company for taking their membership. The US company has no office in India, they operate in USA. Worldwide companies can become their member and in return, they will share the documents they have created related to the insurance industry in the USA. We need the membership as we develop software for the insurance market. Our company is a Sole Proprietory company (single owner). The bank is suggesting that we should fill S1099 (Other Services) as the code for remittance. Kindly share if in this case 15CA CB is needed and TDS is applicable or not?