Income tax

Dear Kapil,

The Remitter as per section.195(6) & rule 37BB need to obtain the form 15CB from a Chartered Accountant while remitting the payment to non-resident and need to file the form 15CA ( undertaking by remitter)  in online in the income tax website through their PAN login. After online preparation of form 15CA need to take print out and sign and submit along with form 15CB to their banker/AD to remit the payment. For every remittance, remitter need to above procedure to remit the payment.

one need to a little R&D for deducting TDS of a non resident. Procedure is mentioned below:

1. C wether tht person is having pan no or not. If he is having pan number then he will get the benefit of DTAA.. otherwise not.. IN case he has pan number thn read the relevant DTAA (available on income tax site) and deduct TDS as per act or DTAA (whicherver is beneficial to assessee. Kindly assure tht he provides you with the tax residency certificate aswell). In case the Non Resident doesnt have pan.. then deduct TDS as per act or rule 206aa i.e rate mentioned in the act or 20% whichever is higher..

2. Deposit the TDS Via challan 281 under the relevant section.

3. The detail of TDS deducted is also to be mentioned in Form 15CA & 15CB.

Please check the attached file for your reference.