INFORMATION REQUIRED TO BE FURNISHED BY A PERSON MAKING PAYMENT TO A NON-RESIDENT OR TO A FOREIGN COMPANY
The Finance Act, 2008 had inserted sub-section (6) in section 195 of the Income Tax Act, 1961 (‘the Act’) whereby any person making payment (other than salaries) to a non-resident (including a foreign company), is required to furnish information in accordance with the Rules to be framed.
The Central Board of Direct Taxes (‘CBDT’) had issued a Notification No 30/2009 dated 25 March 2009 by inserting Rule 37BB to the Income Tax Rules, 1962 (‘the Rules’). The said Rule 37BB shall come into force with effect from 1 July 2009 and accordingly, apply to all payments or remittances (other than salaries) to a non-resident (including a foreign company), on or after 1 July 2009.
The CBDT has now issued a new Circular No. 04/2009 dated 29 June 2009 to explain the revised procedure for furnishing information regarding remittances being made to non-residents w.e.f. 1 July 2009 as follows:
The person making the payment (remitter) has to obtain a certificate from a Chartered Accountant (other than employee) in Form 15CB.
The remitter then has to access the website www.tin-nsdl.com to electronically upload the remittance details in Form 15CA (undertaking). The information to be furnished in Form 15CA is to be filled using the information contained in Form 15CB (certificate).
The remitter will then take a print out of this filled up Form 15CA (which will bear an acknowledgement number generated by the system) and sign it. Form 15CA (undertaking) can be signed by the person authorized to sign the return of income of the remitter or a person so authorized by him in writing.
The duly signed Form 15CA (undertaking) and Form 15CB (certificate) will be submitted in duplicate to the Reserve Bank of India (‘RBI’) / Authorized Dealer (‘AD’). The RBI / AD will in turn forward a copy the certificate and undertaking to the Assessing Officer (‘AO) concerned.
A remitter who has obtained a certificate from the AO regarding the rate at or amount on which the tax is to be deducted is not required to obtain a certificate in Form 15CB. However, he is required to furnish information in Form 15CA (undertaking) and submit it along with a copy of the certificate from the AO as per the procedure mentioned in (i) to (iv) above.
The Directorate General of Income-tax (Systems) shall specify the procedures, formats and standards for running of the scheme as well as instructions for filling up Forms 15CA and 15CB. These forms shall be available for upload and printout at www.tin-nsdl.com.
.....back
The Finance Act, 2008 had inserted sub-section (6) in section 195 of the Income Tax Act, 1961 (‘the Act’) whereby any person making payment (other than salaries) to a non-resident (including a foreign company), is required to furnish information in accordance with the Rules to be framed.
The Central Board of Direct Taxes (‘CBDT’) had issued a Notification No 30/2009 dated 25 March 2009 by inserting Rule 37BB to the Income Tax Rules, 1962 (‘the Rules’). The said Rule 37BB shall come into force with effect from 1 July 2009 and accordingly, apply to all payments or remittances (other than salaries) to a non-resident (including a foreign company), on or after 1 July 2009.
The CBDT has now issued a new Circular No. 04/2009 dated 29 June 2009 to explain the revised procedure for furnishing information regarding remittances being made to non-residents w.e.f. 1 July 2009 as follows:
The person making the payment (remitter) has to obtain a certificate from a Chartered Accountant (other than employee) in Form 15CB.
The remitter then has to access the website www.tin-nsdl.com to electronically upload the remittance details in Form 15CA (undertaking). The information to be furnished in Form 15CA is to be filled using the information contained in Form 15CB (certificate).
The remitter will then take a print out of this filled up Form 15CA (which will bear an acknowledgement number generated by the system) and sign it. Form 15CA (undertaking) can be signed by the person authorized to sign the return of income of the remitter or a person so authorized by him in writing.
The duly signed Form 15CA (undertaking) and Form 15CB (certificate) will be submitted in duplicate to the Reserve Bank of India (‘RBI’) / Authorized Dealer (‘AD’). The RBI / AD will in turn forward a copy the certificate and undertaking to the Assessing Officer (‘AO) concerned.
A remitter who has obtained a certificate from the AO regarding the rate at or amount on which the tax is to be deducted is not required to obtain a certificate in Form 15CB. However, he is required to furnish information in Form 15CA (undertaking) and submit it along with a copy of the certificate from the AO as per the procedure mentioned in (i) to (iv) above.
The Directorate General of Income-tax (Systems) shall specify the procedures, formats and standards for running of the scheme as well as instructions for filling up Forms 15CA and 15CB. These forms shall be available for upload and printout at www.tin-nsdl.com.
.....back
