11 January 2012
Sir, our co. want to transfer 1200 USD to a foriegn co. for purchase of toll free no. in US and installation of soft IP phones. We are engaged in providing consultancy and technical services to US customers from india. Now when we approached bank for wire transfer,they demanded form 15ca. Now i want to know whether tax need to be deducted on that amount u/s 195 ? as we have not obtained TAN yet and money is required to be sent A.S.A.P so can you guide me any other way
Now a days, 15CA and 15CB is mandatory for making remittances abroad. What you need to do is that fist check up whether any DTAA between India and USA, if so, is there any exemption clause for the USA supplier from paying tax in India. As per income-tax act it is an income accrued and arised in India and taxable India. But DTAA or Income-tax which ever favourable to the assessee can be applied. You have to approach a practicing CA to get the Form 15CB and you have to file online the 15CA.
18 January 2012
since toll free number is provided outside India the income out of this transaction is not generated in India hence US co is not required to pay income tax on it in India, hence TDS u/s. 195 is not deductible. However you need to obtain 15-CA.
19 January 2012
since overseas payment is big issue, it would be better if you consult your CA and he will take care of all aspects, even though you have to obtain 15CA from CA
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