Tds on payment made to indian branch of foreign compnay

Hi Everone..

Please suggest TDS implication on payment made to Indian branch of foreign reinsurance company.

Our understanding in respect of TDS implication on payment made to Indian branch of foreign reinsurance company.

Since Reinsurance branches are treated non-resident entities for Indian tax purposes and in the absence of lower/nil TDS certificates, all the payments which are received by the reinsurance branches would be subject to withholding at 40% (plus applicable surcharge and education cess). And need to file 15CA & 15CB certificate

2. Where lower TDS certificate is provided u/s 197(1), TDS should be deducted accordingly as per that certificate and No need to file 15CA & 15CB certificates. as the rate is already decided by Income tax officer u/s 197(1), so no need to take opinion from CA about TAX rate.

We have obtain lower TDS certificate u/s 197(1) from that company, Please suggest we have to file 15CA / 15CB certificate for the above payment or not.

Ankit patel

Mo. No. - 8691908859

Form 15CA has 4 parts as mentioned below. Depending on amount and taxability of remittance, specific parts of Form 15CA need to be filled:

Part	Descripttion
Part A	If remittance is taxable and the total value of such remittance or remittances during the Financial Year is less than Rs. 5 lakh.
Part B	If remittance is taxable and the total value of such remittance or remittances during the Financial Year is more than Rs. 5 lakh and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.
Part C	If remittance is taxable and the total value of such remittance or remittances during the Financial Year is more than Rs. 5 lakh and a certificate in Form No. 15CB from an accountant as defined in the explanation below sub-section (2) of section 288 has been obtained.
Part D	To be filled up if the remittance is not taxable other than payments referred to in rule 37BB(3) by the person referred to in rule 37BB(2).