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Form15CA & 15CB

Anand (Practicing CA) (190 Points)

08 September 2009

If an assessee ( PVt Ltd Co) is making payment outside india inthe form of reimbursment to foreign copmany for expenses incurred onbehalf of indian co.

If no TDS is required to be done on the same is the assesse required to file Form 15CA & 15CB?

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4 Replies

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 08 September 2009

Dear Anand,

Yes read sub-section 6 of section 195 carefully, if you cant able to crystalised let me know i shall explain you.

Thanks

Batul (Article assistant) (207 Points)
Replied 30 September 2009

Yes incase of any foreign payments whether tds applicable or not is required to form 15CB

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA) (7014 Points)
Replied 24 May 2011

The primary role of CA is to explain and carve out any income being sent in disguise of "Reimbursement of Expenses".

Form 15CB is an important tool for Government to check any tax evasion.

So kindly be very clear in what exactly are you paying as "Reimbursement of Expenses".

Anuj

0-9810106211

CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 03 June 2011

It is a typical situation if the expenses instead of routing from foriegn company has been made directly to the vendor than TDS would have been deducted u/s 195 on the payment released to the vendor.

Now the foriegn company had made the payment on behalf of indian company without TDS deduction, which needs to be deducted as per indian law. In this situation when the expenses are reimbursed, tds should be deposited to the credit of indian government.