Form 15CA and 15CB

Dear all,

I have come up with some issued during the audit, please provideyour suggestions.

Situation - 1

A proprietorship firm is engaged in developing of websites for indian/international clients. Now for the same the firm pays around 50 dollars for the website space through online payment by using his friend's credit card. Now the query is whether the client is required to take for 15CA and 15CB as the transaction amount is minimal. And further the payment is not done from the firm's bank account directly, inteasd a friend is paying and propietor is reimbursing the amount to his friend. Secondly is there any tax complication on his friend.

Situation  - II

A company is having corporate credit card and its employees are travelling abroad carrying the corporate credit card. All the expenses such as boarding, lodging, local travel, meals, entertainment etc. are paid via the card. The bank send us the corporate credit card in indian currency. Now the question arises regarding the applicabily of TDS in this case and futher obtaining the form 15CA and 15CB. 

Thanks and regards,

Rashi Goyal

   

Replies (1)

Firstly form 15ca/cb is required when a resident remits any money to a non-resident through a bank i.e., wire transfers.

In your first situation; if your paying the money through a credit card form 15ca/cb should not be required at all. Amount or currency is not the criteria here. If resident is paying to non-resident form is required even if its just 1$ also. Further complications may arise as such a payment may be liable to wht as the same may fall under 'fees for technical service'.

In your second situation; I understand that a Indian bank (resident) is issuing a forex travel card to the resident company. And such company's emploees use the same card. Here form 15ca/cb is not required since its a transaction between two residents. Further tds should be complied as u/s 194 i.e., domestic tds rates.

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