TDS on Rent 195 Or 194I and Form 15CA Needed or Not

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This discussion clarifies TDS implications for an Indian company renting property from an individual living abroad. While the property owner resides in Dubai, they have an Indian PAN and an NRO bank account in India. Experts suggest Section 195 of the Income Tax Act is applicable for TDS, with a rate of 30% plus 4% cess. However, there's a debate on whether Form 15CA is necessary, as the payment is made into an Indian NRO account and not remitted internationally. The consensus leans towards Form 15CA not being required in this specific scenario.

Ashish Kumar Pandey

Ashish Kumar Pandey (Querist)
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02 September 2022 If an Indian company taken a property on rent in Kanpur India
Property owner (Individual) Lived in Dubai last 10Years and raised bill from his Dubai address and also given PAN to us which was registered in India
But payment taken in his NRO bank account which is also in India,

So, Kindly suggest for TDS deduct under which section
Form 15CA needed or not if TDS deduct under section-195 NRI

Read more at: https://www.caclubindia.com/experts/tds-on-rent-195-or-194ib-2877694.asp

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)
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02 September 2022 I believe that owner living in dubai resides in such a way that he is non resident. s.195 will apply. looking at provisions if rule 37bb l, 15CA will be required. However, it is also arguable and being followed by different entities that 15CA is required only for international remittance and not for transfer in NRO account. CBDT memorandum explains that purpose of these firms is to track international payments and in fact 15Ca/CB also require to mention he country where amount us getting remitted.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2022 TDS u/s 195 applicable deduct 30% plus 4% cess.
15CA /15CB not required as money is not transferred outside India.

Ashish Kumar Pandey

Ashish Kumar Pandey (Querist)
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02 September 2022 If we made form 15CA then
Which country name mentioned in form 15CA India or Dubai (UAE) and
Currency also because fund transfer to his Indian NRO account in INR But in the form 15CA required a column remittance in foreign currency

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2022 No need for form 15CA in such a case.

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