REMITTANCE
This query is : Resolved
munawwar shaikh
(Querist)
11 March 2011
Hello Sir,
I need voip(voice over internet protocol) topups for reselling purpose.i have to do remittance.For this the bank requires the 15CA , 15CB form.
So kindly clarify that is TDS applicable for doing foreign remittance.and which tax is applicable for this type of business?kindly reply plz.
I need voip(voice over internet protocol) topups for reselling purpose.i have to do remittance.For this the bank requires the 15CA , 15CB form.
So kindly clarify that is TDS applicable for doing foreign remittance.and which tax is applicable for this type of business?kindly reply plz.
munawwar shaikh
(Querist)
15 March 2011
heellooooo
21 July 2025
Regarding your query about remittance for VOIP top-ups reselling and related tax compliance:
1. Is TDS applicable on foreign remittance?
Yes, TDS (Tax Deducted at Source) may be applicable on certain foreign remittances under Section 195 of the Income Tax Act if the payment is chargeable to tax in India.
The remittance for purchase of VOIP top-ups is usually a business expense or payment for services/goods.
If the payment is made to a non-resident or foreign entity, you need to deduct TDS if the payment is taxable in India as per the Income Tax Act.
2. Forms 15CA and 15CB
Form 15CA is a declaration of remittance by the remitter and needs to be filed online with the Income Tax Department before remitting money abroad.
Form 15CB is a certificate issued by a Chartered Accountant confirming the TDS deduction or that no TDS is applicable on the remittance as per tax laws/treaty provisions.
Both forms are required for bank’s compliance and RBI guidelines for outward remittance.
3. Which tax is applicable for this type of business?
Your income from reselling VOIP top-ups will be treated as business income and will be taxable under the head ‘Profits and Gains of Business or Profession’.
You will have to maintain proper books of accounts and pay tax accordingly under normal income tax slabs or applicable presumptive taxation schemes, if eligible.
GST (Goods and Services Tax) may also be applicable if your turnover exceeds threshold limits, especially on services.
1. Is TDS applicable on foreign remittance?
Yes, TDS (Tax Deducted at Source) may be applicable on certain foreign remittances under Section 195 of the Income Tax Act if the payment is chargeable to tax in India.
The remittance for purchase of VOIP top-ups is usually a business expense or payment for services/goods.
If the payment is made to a non-resident or foreign entity, you need to deduct TDS if the payment is taxable in India as per the Income Tax Act.
2. Forms 15CA and 15CB
Form 15CA is a declaration of remittance by the remitter and needs to be filed online with the Income Tax Department before remitting money abroad.
Form 15CB is a certificate issued by a Chartered Accountant confirming the TDS deduction or that no TDS is applicable on the remittance as per tax laws/treaty provisions.
Both forms are required for bank’s compliance and RBI guidelines for outward remittance.
3. Which tax is applicable for this type of business?
Your income from reselling VOIP top-ups will be treated as business income and will be taxable under the head ‘Profits and Gains of Business or Profession’.
You will have to maintain proper books of accounts and pay tax accordingly under normal income tax slabs or applicable presumptive taxation schemes, if eligible.
GST (Goods and Services Tax) may also be applicable if your turnover exceeds threshold limits, especially on services.
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