Information Regarding 15CA & 15CB

Tax queries 746 views 1 replies

Waeather 15CA & 15 CB applies on Students making payments to Foreign Colleges

Replies (1)

Mr.Yogesh

The forms are prescribed under sub-section (6) of Section 195 of Income-tax Act. And it is mentioned in subsection (6) ---The person referred to in sub-section (1).

In sub-section (1) of section 195 says that

Any person responsible for paying to a non-resident, not being a company, or a foreign comany any interest or any other sum chargeable under the provisions of this Act(not being income chargeable under the head salaries) shall, at the time of credit of such income to the account of the payee or at the time of payment there of in cash or by issue of a cheque  or draft or by any other mode, whichever is ealier, deduct income-tax thereon at the rates in force:

Now you have to ascertain whether the payee (college)  falls under the ambit of non-resident or a foriegn company and

whether the payment made to that college falls under the ambit of "other sum" mentioned in the section.

If you get clarification for the above two querries you will know whether the new forms are applicable or not in a situation as explained above by you.

Best Wishes

Sathikonda


CCI Pro

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