19 December 2013
Hi,Facts of the case: Im an Indian citizen and want to buy a flat at Bangalore from an NRI - green card holder residing at U.S. He wants to register this property through a power of attorney to his mother. In this connection i want to know: (i) do i have to take any permission or approval from RBI or under the FEMA Act 1999 for remmitting the purchase consideration to his account? (ii) What procedure seller- NRI has to follow while executing the power of attorney
19 December 2013
You have certain compliances under Income Tax Act
You have to deduct TDS under section 195 of IT Act which is 20% of the total sale consideration. You need to obtain TAN Registration deduct tax and pay it to the credit of Income tax and issue TDS Certificate.
At the time of remittance you need to fill Form 15CA and obtain a Certificate from CA in Form 15CB to be submitted to your Banker
(Alternatively the NRI can obtain TDS Certificate for Low Deduction or No Deduction and based on that certificate the buyer need to act.)
The NRI Seller who has executed POA in USA has to get it notarised from Indian Embassy in USA (I believe this will be costly affair but cant avoid)
CAclubindia
