Import -- withholding tax

Friends

My company has imported some goods from a company outside India. Now while paying the non resident entity through outward remittance, do we need to deduct tax at source under section 195 read with DTAA ?

I believe there is no requirement to deduct so, but , then what remarks are to be given in form 15CA and 15CB for non deduction of tax at source.

Regards,

Replies (3)

No tax need to be deducted on payment made for import of goods from a foreign country, as the same is not covered under 195

agreed...............

Friends/Seniors

Point no. 13 of Form 15CA which a company assessee has to upload in the TIN NSDL requires the following information :

In case the remittance is for supply of articles/things please indicate

a) whether the recipient of remittance has any PE in India through which the beneficiary of remittance is directly / indirectly carrying on such supply activity of articles or things

b) whether such remittance is attributable to or connected with PE

c) If answer to b is yes, amount of income comprised in such remittance liable to tax.

So, if there is PE, does outward remittance for import of goods is subjected to withholding tax under section 195 read with DTAA .

Regards,

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