Report under 3CD

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This discussion clarifies reporting requirements under clause 3CD of the tax audit report concerning payments made to foreign companies. It addresses whether a Sri Lankan company with an Indian establishment should be treated as a resident or non-resident for reporting purposes. The consensus is that an establishment in India generally makes the company a resident, and payments in INR to residents do not require reporting as payments to non-residents, especially if TDS is not applicable.

Mahendra Surana

Mahendra Surana (Querist)

13 December 2021 Dear Sir/Madam, One of my client paid commission to foreign national company in INR Rs. 24,000/- In 3cd Tax Audit reporting of payment without TDS to Non Resident, whereas Company is Sri lankan amd establishment in India. Is it necessary to report in payment to Non Resident col.? as I understand Non Resident means Indian Origin not Resident in India, is it correct.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 December 2021 The company is resident in india. Report it under resident.
You are right in case of NRI but Non resident include foreign citizens and foreign companies also.

Mahendra Surana

Mahendra Surana (Querist)

13 December 2021 Sir , commission Receiving company is Sri Lankan , They do not have any establishment or their own perosn over here, hence it is foreign company.In this case is it necessary to report in 3CD clause 21 (b)i...as payment to Non Resident-21(b)iA Detail of payment on which tax is not deducted......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 December 2021 See your first query, Company is Sri lankan amd establishment in India.
In such a case it's resident.
Ruppe payment can be made only to resident.

Mahendra Surana

Mahendra Surana (Querist)