Name of the Organization : VAPI Branch of WIRC of ICAI (vapi-icai.org)
Type of Facility : Foreign Remittances & Procedure For Form 15CB
Location : India
Website : http://vapi-icai.org/
Foreign Remittances and Procedure for Form 15CB:
Issues :
1) Whether refund of excess TDS deducted and paid u/s 195 is possible-
2) Section 195 :
Whether it is mandatory for a person responsible for paying any sum chargeable under the Act , to a non- resident , to make an application to the Assessing Officer to determine the appropriate proportion of sum chargeable to tax-
3)What is withholding tax implication u/s 195 on following transactions :
A) Managements expenses paid to Head Office
B) Reimbursements of expenses
C) Payment by resident to Indian Branch of Foreign Bank (Payment of Interest and Bank charges)
D) Payment by Offshore Branch of Indian Company to Offshore Branch of Indian Bank (Bank registered under Banking Regulation Act)
E) An American Company has an arrangement with and Indian company to depute its personnel to Indian Company on a hire out basis. The personnel deputed worked under supervision and control of Indian Company. The Indian company reimbursed to American Company, the salary paid to personnel.
F) Taxability of interest remitted by Branch of Bank to its Head Office abroad
G) Interest paid by Indian Company to Singapore Branch of ABN Amro Bank(RBS)
H) US company sharing management experiences and business strategies to Indian Company
4) TDS on Royalty and Fees for Technical Services- Whether following transactions are business income/royalty/fees for technical services :
** A non-resident UK based company is providing the service of collecting data and analyzing it and making a database for providing information on suitable candidates for recruitment- discuss tax implications
** Payment made to UK company for carrying calls and data outside India
** Web-hosting charges/domain registration charges
** Electronic Ordering and downloading of digital products
** Data warehousing/Data Retrieval Services
** Limited duration software /Single use software
(5) A US company providing drug testing services and giving report to Indian Company. Whether Indian company should withhold tax on payment to US Company.
(6) A US manufacturer has experience in the use of process for manufacturing wall board for interior walls of the houses which is more durable than standard products of its type.
A Indian builder wishes to this product for its own use :
** it rents a plant in India and US manufacturer sends experts to show Engineers of Indian Company, how to produce the extra strong wall board;
** in above example, what will be the situation, if Indian Company provides raw material and US manufacturer uses its technology and gets fee for the same-
(7) What is withholding tax implication u/s 195 on following transactions :
** The payment made for exhibition outside India/ Participation Fees for the conference
** Fee for membership of various trade bodies/other organizations outside India
** Legal advisory services to Indian company in France by advocate in France
** Sales and Marketing Services provided to market products of Indian company in foreign country
(8) Is “Treaty Shopping” valid mean of tax planning-
(9) Mr. A , a resident has purchased residential flat at Ahmedabad from Mr. Y, resident of Dubai. Whether Mr. A should deduct tax u/s 195. Also, how a Chartered Accountant should issue Form 15 CB, if asked by Mr. A
(10) RBI allows general remittance of USD 1 million per year subject to undertaking and CA Certificate. Authorized dealers asks for CA Certificate. Mr. Nice, an NRI is remitting funds from his account in India to his account in UK. How a Chartered Accountant will certify this
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