Tds applicable to foreign freelancer

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Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2015 We are a proprietorship firm, we are providing Art Services. We have a "Russian freelancer" from whom we are taking some art services at professional expenses,

I would like to inquire If there is any TDS Deduction applicable.

If yes, then at how much rate (%) and under which section ? How we can manage? Is there any forms also required for the same like form 15CA and 15CB?

Kindly provide me information for the same on urgent basis.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 July 2015 TDS applicable and 15CA and 15CB required your CA will guide you while issuing 15CB.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2015 Thanks for reply,
What is the procedure of filling form 15CA/CB? And how much rate(%) will deduct?

CMA Gul S

CMA Gul S (Expert)
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14 July 2015 As per Section 195 of the Income Tax Act 1961, every person liable for making a payment to nonresidents shall deduct TDS from the payments made or credits given to nonresidents at the rates in force.
The Reserve Bank of India also mandates that except in cases of certain personal
remittances which have been specifically exempted, no remittance should be made to a nonresident without furnishing an undertaking in Form 15CA accompanied by a certificate from an Accountant in Form 15CB
The purpose of this undertaking and certificate is to collect taxes at the stage when the remittance is made as it may not be possible to recover the tax at a later stage from the nonresidents.
The format of the undertaking in Form 15CA which is to be filed electronically and the format of the certificate of the Accountant in Form 15CB have been notified vide Rule 37BB of the Income Tax Rules 1962

Procedure for furnishing Form 15CA
The Revised Procedure for furnishing information regarding remittances being made to nonresidents wef 1st July 2009 is as follows:
1. The Person making the Payment (Remitter) shall obtain a certificate from an accountant(other than employee) in Form 15CB
2. The Remitter shall then electronically upload the undertaking containing the remittance details to the department in Form 15CA on the following website https://onlineservices.tin.nsdl.com/TIN/JSP/tds/enterForm15CA.jsp
3. The Information furnished in the Form 15CA is to be filed using the information contained in Form 15CB
4. The Remitter shall take a print out of this filled up Form 15CA (which will bear an acknowledgement number generated by the system) and sign it. The Form 15CA shall be signed by the person authorised to sign the return of income of the remitter or the person so authorised by him in writing
5. The duly signed form Form 15CA and Form 15CB shall be submitted in duplicate to the Reserve Bank of India/ Authorised Dealer. The
Reserve Bank of India/ Authorised Dealer will then forward a copy of the Certificate and undertaking to the assessing officer concerned
6. A Remitter who has obtained a certificate from the Assessing Officer regarding the rate at or amount on which the tax is to be deducted is not required to obtain a certificate from the Accountant in Form 15CB. However, he is required to furnish information in Form 15CA and submit it
along with a copy of the certificate from the Assessing Officer

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