TDS deduction.
This query is : Resolved
10 January 2025
Is TDS is deductible if payment reverse by individual to NRI by filing 15CA?
Code :- s1502
Code :- s1502
11 January 2025
Can you provide more clarity? What is the reversal that you are mentioning?
12 August 2025
✅ Short Answer: YES — TDS may be applicable, depending on the nature of the payment and if it is taxable in India.
🔍 Detailed Explanation:
📌 What is Code S1502?
Code S1502 in Form 15CA/CB relates to:
"Remittance towards purchase of goods (not under import license)."
This is typically used for import payments or foreign purchases.
✅ TDS Applicability (Section 195 of Income Tax Act):
Section 195 says: Any person (including individual) making payment to an NRI or foreign entity that is chargeable to tax in India must deduct TDS.
If the amount is not taxable in India, no TDS is required.
📌 So, TDS is not required when:
Payment is purely for purchase of goods, and
There is no business connection/permanent establishment of the NRI in India, and
Payment is not taxable in India under the Income Tax Act or under DTAA (Double Taxation Avoidance Agreement)
✅ Form 15CA Filing:
Even if TDS is not required, Form 15CA (Part D) is still to be filed to declare no TDS based on the exemption.
If the amount exceeds the threshold or is taxable, Form 15CB (from CA) is also needed.
🔍 Detailed Explanation:
📌 What is Code S1502?
Code S1502 in Form 15CA/CB relates to:
"Remittance towards purchase of goods (not under import license)."
This is typically used for import payments or foreign purchases.
✅ TDS Applicability (Section 195 of Income Tax Act):
Section 195 says: Any person (including individual) making payment to an NRI or foreign entity that is chargeable to tax in India must deduct TDS.
If the amount is not taxable in India, no TDS is required.
📌 So, TDS is not required when:
Payment is purely for purchase of goods, and
There is no business connection/permanent establishment of the NRI in India, and
Payment is not taxable in India under the Income Tax Act or under DTAA (Double Taxation Avoidance Agreement)
✅ Form 15CA Filing:
Even if TDS is not required, Form 15CA (Part D) is still to be filed to declare no TDS based on the exemption.
If the amount exceeds the threshold or is taxable, Form 15CB (from CA) is also needed.
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