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Foreign remittance whether tax to be deducted at source ?

Tax queries 954 views 2 replies

CA Abhishek Singh

practice

2112 Points Joined February 2009

Hello everyone,

one of my client has entered into agreement with a company in turkey providing certification services. as per agreement my client has to pay to the foreign co. 150$ per certification. He has done 3 certification in the year 12-13.

now he want to make pmt of 450$ to the turkish co. he has come to me for form 15CB certificate. My

Question: whether my client needs to deduct tax at source? if yes at what rate?

Replies (2)

CA Ashish Pathak

Employed at Cipla Ltd.

2779 Points Joined April 2011

Yes Abhishek, Tax has to be deducted u/s 195 for this foreign remittance. Your client has to obtain PAN for this Non-Resident client else tax is to be deducted @ 20% u/s 206AA. I suggest you to go through CBDT circular No- 4/2009 dated 29/6/2009. This circular was issued regarding procedure for foreign remittance. I am sure this circular will clear all your doubts regarding foreign remittance. Hope this will help you. Regards.