Regarding 15CA.

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This query is : Resolved

Divyesh Ajmera (Querist)

10 January 2025 If amount of remittance is below 2,00,000 and purpose is for reversal or wrong entry S15002 so there is liability to deduct any TDS amount for same?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

12 August 2025 Thanks for your query. Let's address it step by step.

📌 Your Query Summary:
Remittance amount: Below ₹2,00,000

Purpose code: S1502 – Import of goods

Nature of remittance: Reversal or correction of wrong entry

You're asking: Is TDS applicable under Section 195 for such remittance?

✅ Short Answer: No, TDS is NOT applicable
If:

The remittance is for correction/reversal, not actual income or supply, and

The remittance does not result in income chargeable to tax in India, and

The original payment was also non-taxable (e.g., for import of goods).

🔍 Detailed Reasoning:
🔸 Section 195 (TDS on payments to non-residents):
TDS is applicable only when the payment made to a non-resident is chargeable to tax in India.

In your case:

If the remittance is just a correction/reversal of a wrongly made payment,

And if no goods or services are being received in exchange (i.e., no income for the recipient),

Then it is not chargeable to tax under Indian Income Tax law.

✅ Therefore, TDS is not required.

🧾 Form 15CA Requirement
Since amount is less than ₹2,00,000 and non-taxable, here's what applies:

Criteria Rule
Amount < ₹5,00,000 in FY Only Form 15CA – Part A required
Remittance not taxable in India ✅ Mention as "Not taxable"
TDS Deduction Required? ❌ No
Form 15CB (from CA) Required? ❌ No

✅ Conclusion:
Point Answer
TDS applicable? ❌ No
Form 15CA required? ✅ Yes (Part A)
Form 15CB required? ❌ No
Purpose code S1502 acceptable? ✅ Yes
Action needed? File 15CA (Part A) correctly

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