REFUND OF ADVANCE FOR EXPORT

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This query is : Resolved

Shaikh Imran (Querist)
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26 July 2010 Dear All Members.

Good Day to all,

Facts are as follows..

1 - Company had received a advance for export in 2007 but due to some technical reason company couldn't export yet and now the Remiter wants money (USD) to be refunded.

2 - The had also received a consent letter from Remiter for refund without interest.

3 - The company had also informed to RBI about the fact of this matter and RBI had also given the approval of refund from FEM point of view that company ca go ahead with refund proceeds without interest.

4 - The company had asket to his bank about the prescribed forms and formalities to be filled in for refund proceeds.

5 - The bank informed company that they require 2 forms called 15CA & 15CB and when i read that form itsasking about TDS on payment to Foreign Company and some other related details...

6 - I have also read DTAA aggreements posted on ITD site for country (TANZANIA) but there no option for such nature of payments where TDS attracts or i might have made a mistake in reading....

YOUR OPINION REQUIRED.........

Whether this type of payment does involve any TDS application....

IF yes then whats are the provisions and also please guide me how to follow such provisions...... also the exact precoutions and proceedure to be follow for tis type of payments to Foreign Company (Remitter)

WAITING FOR YOUR EARLY REAPLY .

Imran Shaikh.

skimran2007@gmail.com

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 August 2010 Since this is repayment of advance without any interest, TDS is not required.

TDS is applicable when any income or investment income is being paid.

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