Bill payment to foreign company

Mr. A can make an application to his bankers to make a transfer to the British Company.

Form 15CA, Form 15CB, application form, invoice of goods purchased and other document asked by bank would be required to be submitted to the Bank in order to transfer the funds.

Procedure to remit money outside India [Sec 195 read with Circular No. 04/2009]

ü  Remitter obtains certificate from a CA i.e., Form 15CB

ü  Remitter electronically (at www.tin-nsdl.com) uploads the remittance details in Form 15CA.

ü  Remitter takes a print of the filled undertaking (Form 15CA) with system generated acknowledgement number and signs it

ü  The duly signed Form 15CA (undertaking) and Form 15CB (certificate) is then submitted in duplicate to the RBI/authorized dealer i.e., to Banker, along with other documents (A1/A2) who in turn transfers the fund.

ü  A copy of undertaking (Form15CA) & certificate of Accountant (Form15CB) is forwarded by RBI / Authorized Dealer to the concerned Assessing Officer.

(Source: Quick lessons in direct tax)

Procedure to remit money outside India [Sec 195 read with Circular No. 04/2009]

a. Remitter obtains certificate from a CA i.e., Form 15CB

b. Remitter electronically (at www.tin-nsdl.com) uploads the remittance details in Form 15CA.

c. Remitter takes a print of the filled undertaking (Form 15CA) with system generated acknowledgement number and signs it

d. The duly signed Form 15CA (undertaking) and Form 15CB (certificate) is then submitted in duplicate to the RBI/authorized dealer i.e., to Banker, along with other documents (A1/A2) who in turn transfers the fund.

e. A copy of undertaking (Form15CA) & certificate of Accountant (Form15CB) is forwarded by RBI / Authorized Dealer to the concerned Assessing Officer.

(Source: Quick lessons in direct tax)

Procedure to remit money outside India [Sec 195 read with Circular No. 04/2009]

a. Remitter obtains certificate from a CA i.e., Form 15CB

b. Remitter electronically (at www.tin-nsdl.com) uploads the remittance details in Form 15CA.

c. Remitter takes a print of the filled undertaking (Form 15CA) with system generated acknowledgement number and signs it

d. The duly signed Form 15CA (undertaking) and Form 15CB (certificate) is then submitted in duplicate to the RBI/authorized dealer i.e., to Banker, along with other documents (A1/A2) who in turn transfers the fund.

e. A copy of undertaking (Form15CA) & certificate of Accountant (Form15CB) is forwarded by RBI / Authorized Dealer to the concerned Assessing Officer.

(Source: Quick lessons in direct tax)

Thanks for sharing the knowledge.

But will the transaction be subject to TDS?