For form 15 CB

A outside india remittance towords, CLEARING and FORWARD CHANGES

the DTAA with that country and rate are @ 10%.

what is tax effect in india? can tds are applicable on that? is yes then RATE of tds and sec?
Replies (5)
Quick Summary
This discussion clarifies the tax implications for outward remittances from India, specifically concerning 'Clearing and Forward Changes'. It explores whether Tax Deducted at Source (TDS) under Section 195 is applicable when payments are made for services rendered outside India, especially when a Double Taxation Avoidance Agreement (DTAA) is in place. The consensus leans towards no TDS if the service provider has no Permanent Establishment (PE) in India, as the income would not be taxable in India.

Yes TDS under section 195 will be applicable as per nature of the payment
Nature of the payment are CONTRACT, then what is rate of tax
Take the dtaa rate
Can I net up amount (remittance - TDS ) in form 15CB. OR
Gross up (remittance) and TDS pay separately?

CLEARING and FORWARD CHANGES 

from plain reading as per my opinion it is understood that the expenses being incurred out side India  for services provided outside India therefore if there is no PE in India for said service provider then that income is not taxable in India hence no TDS arise.

 

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