LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Payment to nri or nrc

Vihang Desai (Audit & Tax assistence) (26 Points)

07 January 2013

Hi...

Please tell me that if I make any payment to NRI or NRC so on which rate I have to deduct TDS? What if PAN is NOT AVAILABLE ?

If I am purchasing some material from any company sittuated out side India, will its payment is liable for TDS?

If TDS is not applicable, so should I have to follow Procedure of 15CA & 15CB.

Please reply as early as possible.

Thanks & Regards

Vihang Desai

Reply
Follow
Share

3 Replies

Lokesh Poddar (Executive) (55 Points)
Replied 29 January 2013

If material is purchased then no liability for tds, not required to file 15CA & 15CB. If provisions of section 195 applicable then tds shall be deposited according to the rates prescribed. If PAN is not available, then tds shall be 20.60%.

Vihang Desai (Audit & Tax assistence) (26 Points)
Replied 21 May 2013

Originally posted by : Lokesh Poddar
	If material is purchased then no liability for tds, not required to file 15CA & 15CB. If provisions of section 195 applicable then tds shall be deposited according to the rates prescribed. If PAN is not available, then tds shall be 20.60%.

Thank You Sir.

But now banks are asking for !5CA & 15CB for all payment made outside india, so what to do?

Shudhanshu Agrawal (Business) (2570 Points)
Replied 23 May 2013

In your case TDS rate shall be higher of

- rate prescribed in DTA

- rate prescribed u/s 195

- rate prescribed u/s 206AA

Form 15CA is a undertaking by you for deduction and deposition of tax on his behalf and Form 15CB is a certificate signed by CA. Both are to be filed for any remittance outside India.

1 Like