bj shrestha (student) (71 Points)
14 November 2012
I have a query:
Is Form 15CA & 15CB applicable to TDS on all payment made to Non-resident or Foreign Company?
And one More thing, In case of TDS on Payment made to Non-resident or Foreign Company, normally it is found that Back calculation is made and full payment is made to Non-resident (without TDS deduction)and TDS is shown as Loan & advances (Assets) instead of Liability....Why??
In this case Above forms 15CA & 15CB required to issue?
Please kindly reply.
Bindu Madhav
(Head - Finance & Accounts)
(151 Points)
Replied 14 November 2012
For all payments to Non-residents/foreign companies are required and the exception is 'material purchases' in which case it is clear no TDS applicable and hence banks won't insist.
With regard to your next query, it is grossing-up. In general non-resident companies/foreign companies want to get the full invoiced amounts without any deductions and in that case India companies will bear the tax portion. This is a cost to the Indian company and they can't show as recivable. This is treated as tax has been deducted (Grossing up) and not amounts to non-deduction. Form 15CA & CB is required in this case as well.
bj shrestha
(student)
(71 Points)
Replied 15 November 2012
| Actually What happened, a 100% EOU is making Interest payment on loan taken from a Foreign Bank and Deducting TDS thereon but I did not find the Form 15CA and 15CB. So I am little confused. |
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 15 November 2012
Shrestha
I wish to know what is the rate of TDS. Does the FC bank have a PAN in India. Is it deducting @ 20%. ? Is it issuing TDS certificate ? How can the indian company file TDS return in absence of PAN in Form 27Q.
Please respond.
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