www.ranjca.com


	[email protected] 040-6655 2655


	Prologue Team Ranj Key Offerings Get in Touch Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Instalment Bulletins Notification Circular Income Tax Company Law Service Tax Excise Matters Customs RBI SEBI FEMA Labour Laws Central Sales Tax Accounting Standards The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Cost Inflation Index Rates of NSC Interest Gold and Silver Rates Rates of Depreciation Under Income Tax Act Rates of Depreciation Under Companies Act ROC Fee Structure (As per Companies Act, 2013) ROC Filing Fees (As per Companies Act, 2013) Application & Petition Fees (NCLT) Rates of Stamp Duty Limited Liability Partnership Fees National Industries of Classification IFSC Codes MICR Codes HSN Rate List Comparison of Deduction u/s 80TTA & 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) The Central Excise Act, 1944 Customs Act, 1962 Central Sales Tax Act, 1956 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 The Limited Liability Partnership ACT, 2008 The Securities and Exchange Board of India Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 Maharashtra Value Added Tax Act (2002) Rajasthan Value Added Tax Act, 2003 Bihar Value Added Tax Act, 2005 Karnataka Value Added Tax Act, 2003 Andhra Pradesh Value Added Tax Act, 2005 The Uttar Pradesh Value Added Tax Act 2008 West Bengal Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Gujarat Value Added Tax Act, 2003 Tamilnadu VAT ACT, 2006 Other Statutes The Indian Partnership Act, 1932 Societies Registration Act, 1860 Reserve Bank of India Act, 1934 Competition Act, 2002 Monopolies and Restrictive Trade Practices Act, 1969 Foreign Exchange Management Act, 1999 The Employees' State Insurance Act, 1948 The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 Profession Tax Act Right To Information Act, 2005 Equalisation Levy Act, 2016 The Insolvency And Bankruptcy Code, 2016 Maharashtra Real Estate Regulatory Authority and Rules THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 GST Laws IGST Act , 2017 Central Goods and Services Tax Act, 2017 Union Territory Goods and Services Tax Act, 2017 GST (Compensation to States) Act, 2017 Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules Customs Valuation Rules Service Tax Rules Central Sales Tax (Delhi) Rules, 2005 Central Sales Tax (Maharashtra) Rules Entry Tax Rules Cenvat Credit Rules, 2017 GST Valuation Rules , 2016 Corporate Laws Rules Companies Rules, 2014 The Companies Unpaid Dividend Rules, 1978 Limited Liability Partnership Rules, 2009 LLP Winding up Rules, 2012 VAT Laws Rules Delhi Value Added Tax Rules, 2005 Maharashtra Value Added Tax Rules, 2005 Haryana Value Added Tax Rules, 2003 Andhra Pradesh Value Added Tax Rules, 2005 The West Bengal Value Added Tax Rules, 2005 The Uttar Pradesh Value Added Tax Rules, 2008 Punjab Value Added Tax Rules Rajasthan Value Added Tax Rules, 2006 Bihar Value Added Tax Rules, 2005 Karnataka Value Added Tax Rules, 2005 Telangna VAT Rules 2005 Gujarat Value Added Tax Rules, 2006 Tamilnadu VAT Rules, 2007 Other Statutes Baggage Rules, 2016 Profession Tax Rules NBFC Acceptance of Public Deposits (Reserve Bank) Directions, 1998 NBFC and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 NBFC Auditor’s Report (Reserve Bank) Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules The Insolvency and Bankruptcy of India Rules GST Rules Central Goods and Services Tax Rule, 2017 Forms Income Tax Forms Wealth Tax Forms ROC Forms (As per Companies Act, 1956) Companies Unpaid Dividend Forms Limited Liability Partnership (LLP) LLP Winding up Service Tax Forms NBFCs Forms FEMA Forms ROC Forms (As per Companies Act, 2013) Income Declaration Forms VAT Forms DVAT Forms MVAT Forms Bihar VAT Forms Karnataka VAT Forms UPVAT Forms Haryana VAT Forms WB Vat Forms Punjab VAT Forms Tamil Nadu VAT Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply News Query Careers Admin Login Time Sheet

Hassle-Free Payments to Non-Residents

Businesses today access numerous services and facilities from outside India to provide services within the country. In return for the services/ facilities, remittances have to be made to the non-resident parties. Currently, remittances to non-residents should be accompanied by an undertaking in Form 15CA, and a chartered accountant should certify the applicability of withholding tax through Form 15CB.

Recently, the Central Board of Direct Taxes amended the procedure for remittance to a non-resident. The simplified reporting requirements and procedure, applicable from October 1, 2013, will impact a large number of taxpayers and relieve them of compliance requirements in certain cases.

NO FILING

According to the new rule, both forms need not be filed if the remittance is not chargeable to tax, or if it falls under the exhaustive list of specified transactions such as investment in equity share capital, debt securities, in branches/ subsidiaries, travel for pilgrimage/ medical treatment/ education, and so on.

REVISED FORM 15CA

The revised Form 15CA (to be furnished by the remitter) is now divided into two parts, corresponding to whether the remittance exceeds the prescribed limit or not. Part A is used when the sum chargeable to tax does not exceed Rs 50,000 per transaction and the aggregate of payments during the financial year does not exceed Rs 2.5 lakh. Part B is for remittance exceeding the prescribed limit. Form 15CA requires mandatory insertions if the Permanent Account Number of the remittee is not available.

REVISED FORM 15CB

Taxpayers need not obtain Form 15CB if the jurisdictional tax officer has issued an order for lower or nil tax deduction. However, where the certificate is required, additional details should be provided including whether a Tax Residency Certificate has been obtained from the remittee, taxable income determined in case of capital gains, taxability under domestic laws and the relevant tax treaty.

PRACTICAL ISSUES

The CBDT has tried its best to liberalise the compliance procedure for remittances outside India. However, a few practical issues remain unresolved. When deciding whether to fill Part A or Part B of Form 15CA (along with Form 15CB), payers may have difficulty determining whether the aggregate payments to be made during the financial year will exceed the limit of Rs 2.5 lakh or not. It is also not clear whether Form 15CB should be obtained for past payments if the aggregate transaction value exceeds Rs 2.5 lakh during the year, and Part A of Form 15CA was filled in the past with the understanding that future aggregate payments would not exceed the limit.

The liberalised procedure is a welcome move towards a simplified compliance regime for remittances outside India. However, the onus of proof is on taxpayers where it is claimed that the transaction is not chargeable to tax.

Business Line, New Delhi, 23-09-2013