TDS under Section 195

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This query is : Resolved

Pradip (Querist)

03 July 2008 I need to certify papers regarding TDS on registration fees paid to non resident which is not applicable under section 195, bank requires certification why this is not deductible???

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)

04 July 2008 Hi Pradeep,

I think you r talking about the tax clearance certificate from chartered accountant prescribed under Fema which has to be shown to the bank for remitting foreing corrency to a foreigner.

In that certificate you have to give the details like Beneficiary's name & address, amount to be remitted, corresponding amount in INR & the amount of tds & the rate at which tds has been deducted or the reason if a lower rate of deduction has been applied.

In case tds has not been deducted by your client then you should mention in the cerficate that tds has not been deducted & the reason for the same.

Hope this will resolve your querry.

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)

04 July 2008 One reason for non deduction of TDS may be that an Application may have been submitted to the AO by your client in this regard under Section 195 (2) of IT Act, 1961.

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