We have company to wishes to remit to a foreign company established in Hong Kong, towards Freight and Transport Charges.
1. the Foreign Company Does not have a establishment in India
2. Tax residency certificate cannot be obtained since India has not Signed DTAA with Hong Kong.
Freight payments are Reimbursible expenses incurred by the company for services provided off shore.
Pls. suggest can remittance to the foreign company without witholding Tax.
Dear Nandha Kumar,
In my openion, the reimbursement can be done without withholding tax. In Form 15CB there is a seperate row of tax as per Income tax india and tax as per DTAA.
As there is no DTAA between India and Hongkong, Tax will be applicable as per income tax act of India.
As you have said that the transaction is purely in nature of reimbursement of actual expenses, it will not be taxable under income tax act.
Apply for 15CB certificate and also file online 15CA.
Click thaks user if you agree.
CAclubindia
