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Payment of royaty under foreign technical colloboration

anand (professional) (122 Points)

23 December 2014

Dear Experts,

1.Whether obtaining TCR certificate is mandatory for payment of royalty under foreign technical colloboration.

2.TCR certificate procedure was in the earlier FERA,act is the same continuing under FEMA

3.Who can issue a TCR certificate i.e only the Company's Auditors or any practising CA

Thanks

Anand

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2 Replies

CA Adit Sharda (Partner G. C. Sharda & Co.) (287 Points)
Replied 23 December 2014

Tax Residency certificate (TRC) is required to get benefit of DTAA provisions over Income Tax Act of India. The same is not mandatory unless you need benefit of Section 90. The form and method for acquiring the same is in Rule 21AB. It is issued by the government of the country where such foreign entity is situated(resident) and not by a CA.