Payment to Non resident ?- Statement by Tax Deductor to Income Tax deptt.

By | October 16, 2016

Furnishing of statements by tax deductor to Income tax Department in case of payment to non Resident

Under sub-section (6) to section 195, inserted by the Finance Act, 2008, with effect from 1-4-2008 the payer is required to furnish information relating to payment of any sum, in such form and manner as may be prescribed by the Board.

With effect from 1-4-2016 rule 37BB, provides as under

The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, shall furnish the following, namely:—

(i)           the information in Part A of Form No. 15CA, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year does not exceed five lakh rupees;

(ii)          for payments other than the payments referred in (i), the information,—

(a)          in Part B of Form No. 15CA after obtaining,—

(I)           a certificate from the Assessing Officer under section 197; or

(II)          an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195;

(b)          in Part C of Form No. 15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288.

♦             The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No. 15CA.

♦             No information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if,—

(i)           the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or

(ii)          the remittance is of the nature specified in column (3) of the specified list below:

SPECIFIED LIST

Sl.No. Purpose code as per RBI Nature of payment
(1) (2) (3)
1 S0001 Indian investment abroad-in equity capital (shares)
2 S0002 Indian investment abroad-in debt securities
3 S0003 Indian investment abroad-in branches and wholly owned subsidiaries
4 S0004 Indian investment abroad-in subsidiaries and associates
5 S0005 Indian investment abroad-in real estate
6 S0011 Loans extended to Non-Residents
7 S0101 Advance payment against imports
8 S0102 Payment towards imports-settlement of invoice
9 S0103 Imports by diplomatic missions
10 S0104 Intermediary trade
11 S0190 Imports below Rs. 5,00,000-(For use by ECD offices)
12 S0202 Payment for operating expenses of Indian shipping companies operating abroad.
13 S0208 Operating expenses of Indian Airlines companies operating abroad
14 S0212 Booking of passages abroad – Airlines companies
15 S0301 Remittance towards business travel
16 S0302 Travel under basic travel quota (BTQ)
17 S0303 Travel for pilgrimage
18 S0304 Travel for medical treatment
19 S0305 Travel for education (including fees, hostel expenses etc.)
20 S0401 Postal services
21 S0501 Construction of projects abroad by Indian companies including import of goods at project site
22 S0602 Freight insurance – relating to import and export of goods
23 S1011 Payments for maintenance of offices abroad
24 S1201 Maintenance of Indian embassies abroad
25 S1202 Remittances by foreign embassies in India
26 S1301 Remittance by non-residents towards family maintenance and savings
27 S1302 Remittance towards personal gifts and donations
28 S1303 Remittance towards donations to religious and charitable institutions abroad
29 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30 S1305 Contributions or donations by the Government to international institutions
31 S1306 Remittance towards payment or refund of taxes
32 S1501 Refunds or rebates or reduction in invoice value on account of exports
33 S1503 Payments by residents for international bidding.

♦             The information in Form No. 15CA shall be furnished,—

(i)           electronically under digital signature in accordance with the prescribed procedures and thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment; or

(ii)          electronically in accordance with prescribed the procedures and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.

♦             An income-tax authority may require the authorised dealer to furnish the signed printout of Form No. 15CA referred to above for the purposes of any proceedings under the Act.

♦             The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the prescribed procedures.

♦             The authorised dealer shall furnish a quarterly statement for each quarter of the financial year in Form No. 15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates.

♦             ‘Authorised dealer’ means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).

 

 

Direct Taxes Ready Reckoner Service Tax Ready Reckoner Company Law Ready Reckoner tax deduction at source
New Books Released on Tax , GST and law

Leave a Reply