Tds on payment made to nri

TDS 1698 views 7 replies

UB

SVP

24 Points Joined July 2011

I am buying a flat from an NRI residing in the Middle East. For this, I will be making payments using rupee DD / rupee cheques which the NRI will be depositing in their NRE or NRO account in Mumbai. Some other facts. I am an individual. Flat is in Mumbai. NRI bought this flat in 2006.

Q1 : Is there a TDS liability for me as a buyer? Even though the amount is not being remitted abroad but being deposited in an NRE or NRO account in Mumbai.

Q2: If there is a TDS liability, how do I determine the TDS amount? Is it a flat 20.6% of the total consideration? Or only the capital gain tax liability of the seller? The sellers CA has given me a certificate on his letter head computing the capital gains liability, but is not in the format of Form 15CB. He says that as the payment is being made to NRE / NRO account in India, there is no requirement of complying with the requirement of Form 15CB and Form 15CA (for online payment of TDS).

Clarifications on the above will be much appreciated and welcome.

Replies (7)

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

1. Yes there is liability for you to deduct TDS u/s 195 even if the cheque is deposited in NRO account in India.

2. TDS amount shall have to determined by a person qualified to deal in such situations as there are many rules and regulations to take care of.Or safely if the seller agrees you can deduct TDS on 20.6% of sale value.(in case of long term capital asset)

Form 15CA and 15CB is required as he payment is being made to a non-resident.

Anuj

+91-9810106211

femaquery @ gmail.com

Ajit Kumar Behera

Accounts Officer

21 Points Joined December 2011

dear sir,

if the rent receiver is nri how much tds is deducted and what is the section of deduction of such tds

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

30.6% is to be deucted u/s 195.

Anuj

jayendrakumar r

Audit Manager

21 Points Joined April 2012

I wanted to know the TDS rate for subscripttion payment of $1000 to NRI and Patent charges to NRI who has there branch in India having PAN

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Joined May 2007

If the Branch in India doesn't have any corelation with the royalty and if the agreement is after 1.6.205 and if the NRI is having PAN then 10.51% otherwise 20% or 40% ,depending on the facts of the case.

Anuj

+91-9810106211

femaquery @ gmail.com

sarikajain

Assisstant manager

25 Points Joined August 2009

Hi sir,

Pls resolve the following query:

I sold one flat and collected the sold amount in the NRO account, now i want to trasfer Money From NRO to NRE but banker is asking for 15 CB/CA. i have some query as folows:

1) if capital gain is there, need to deposit Tax on the Gain.

2) can i avail Slab benefit in case of none of my income is taxable at the time of submitting 15CB or when i submit ITR.

3) As i know the remitter and benefiicary will be same. is there requirment of TAN no.

Thanks