Compliance for foreign remittance to pay

Dear All,

we have hired a consultant for business development residing in Nepal. now we have received an invoice for 1,00,000 INR from that consultant . now my question is what is the documentation required for processing the same. there is a need to file 15ca 15cb (payment exceed 5 lac for the same.

or we can pay him directly after deducting 20% tds under 195.

kindly guide
Replies (2)
Quick Summary
This discussion addresses the compliance requirements for making a foreign remittance of INR 1,00,000 to a business development consultant in Nepal. Key questions revolve around the necessary documentation, including whether Form 15CA and 15CB need to be filed, especially as the payment exceeds INR 5 lakh. The thread also touches upon TDS deductions under Section 195 and potential GST implications under the Reverse Charge Mechanism (RCM).

Income Tax: File Form 15CA and 15CB after deducting 20% TDS u/s 195

GST: You have to pay GST under RCM mechanism
Not 20%. pan is there.

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