Tds under section 195

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 one company has purchased goods from one foreign party and made payment in US DOllor terms but has not taken certificate under form 15CA and 15CB.
whether this expenditure is disallowed ?

What is the consequence when Form 15 CA and 15 CB is not taken from chartered accountant

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

18 April 2013 No, it can be disallowed only if there was any income of foreign party taxable in India on such sale.

15CA and CB are normally not insisted by banks for purchase of goods.

Anuj

CA Prashant Gupta

CA Prashant Gupta (Expert)

18 April 2013 expense will not be disallowed.
15CA and 15CB is normally for TDS.
you told that this is purchase of goods then there is no tds applicable

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

18 April 2013 There is normally no TDS on purchase of goods , but it shall become applicable if the foreign company selling goods in India has PE in India.

Although banks do not insist but legally , in my view, the Indan Company remitting money to foreign company for purchase of goods , should file Form 15CA and obtain Form 15 CB.

Anuj
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