Rent payment to NRO account

We are a partnership firm subject to tax audit. We will soon enter into a rent agreement for a property.

Landlord is citizen of Canada, but has a PAN and holds an NRO account in India

Rent amount is Rs 1.5 lakh per month 

My understanding is since it is a payment to a non-resident, TDS should be deducted at 30% + 4% Cess = 31.2%

But how to file the return? Can we do a simple TDS return upload like we do for rent to a resident landlord?

And payment will be from domestic current account to NRO savings account. Will we have to get 15CA/CB?

Thanks for your input

Replies (3)
Quick Summary
A partnership firm subject to tax audit is seeking guidance on deducting TDS for rent paid to a Canadian landlord who holds an NRO account in India. The discussion clarifies that TDS under Section 195 is required, filed via Form 27Q, and that obtaining Form 15CA/CB is advisable, even for payments in rupees. The firm successfully made an initial payment via RTGS after specifying the payee account type, but is now concerned about potential issues when filing the TDS return.

You need to pay tds u/s 195 and file tds return for non resident payments in Form 27Q. 15CA CB is advisable to be take taken.

Thanks. 15CACB even if payment is in rupees from rupee account to rupee (NRO) account?

Also what about security deposit? I assume no TDS required, but what about 15CACB?

The CA said she will happily provide a 15CACB (for a large fee of course!) But to only get one if the bank or auditor require it.

The bank branch people had no clue, but basically suggested to try online RTGS and if it works then it works.

The auditor said they will not be concerned about 15CACB.

So we just did the first payment to the NRO account by online RTGS and there was no issue. Only a reason had to be specified because the payee account is NRO.

So far so good.

But now when we go to file the TDS return, will the TDS wallas make any noise or ask for any forms or declarations or certificates?

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