- The document discusses procedures related to foreign remittances and TDS requirements under Indian law. - It outlines the process for foreign remittance which includes obtaining forms 15CA and 15CB, details to be provided in the forms based on the remittance amount, submitting the forms to the RBI or authorized dealer along with bills. - TDS must be deducted on payments made to non-residents per section 195 of the Income Tax Act. The applicable TDS rate will be the domestic rate or lower treaty rate, if available. PAN is mandatory for deducting TDS to get benefit of lower or nil rate otherwise TDS is deducted at 20% under section 206AA.

1. CELEBI DELHI CARGO TERMINAL
MANAGEMENT INDIA PVT.LTD
23 ROOM NO. ,
Import building
3, Cargo
terminal , IGI
MOB. (+9111)
47630900

2. FOREIGN PAYMENT
The payment of other country due to
any causes as known as foreign
payment.

3. Procedure of Foreign Remittance
• The person making payments shall obtain a certificate from
accountant in Form 15CB providing details in Form.
• The person shell file a form 15CA electronically after login
into account at income tax portal
• Write on acknowledgement number generated by the
system for future references.
• Take print out of Form 15CA and get signed by authorized
person.
• Submit the duly signed form 15CA, 15CB and copy of bills to
the RBI or any other authorized dealer.
• Exchange rate used for the payment shall be used for
deposition of TDS .

4. TDS ON FOREIGN PAYMENTS
• As per Section 195 TDS shall be deducted on
the payment made to Non-Resident at the
prescribed rate. As per RBI Guidelines, Every
payment except some specifically exempted
payment shall be attached with form 15CA
along with a certificate from a Accountant in
Form 15CB.

5. CATEGROY OG FOREIGN PAYMENTS
• If the remittance is chargeable to tax and does
not exceed Rs. 50000/- and the aggregate of
such remittances in financial year information in
does not exceed 250000/- Part-A of Form 15CA
required and Form 15CB not required.
• Other cases i.e where remittance is chargeable
to tex and exceeds RS. 50000/- and the aggregate
of such remittances in financial year information
in exceeds Rs. 250000/- Part-A &Part-B of Form
15CA required, also From 15CB required.

6. For cases falling under clause (ii) above the
person is also required to obtain a
certificate as under
• A certificate in form 15CB form a Chartered
Accountant; or
• A certificate form Assessing Officer under section
197 ; or
• An order form the Assessing Officer under sub-
section (2) of section 195 for determining the
appropriate proportion for tax deduction or sub-
section (3) of section 195 for no deduction.

7. Withholding (TDS) shall be deducted
as under
Apply Domestic TDS provision as per Part –II of First
Schedule of finance Act/XVIIB Chapter (Withholding tax
rates for Non-resident) of income tax Act.
Apply respective DTAA provision.
Apply Domestic tax rate or DTTA tax rate, whichever is
beneficial – Sec 2(37A) (iii), One of the conduction for
claiming Double Taxation relief is obtaining of Tax
Residency Certificate (TRC) which is mentioned in Section
90(4) & als0 in 90(4)
Sec 206AA to apply, If gross remittance amount is
exceeding taxable limit then PAN no. is mandatory
otherwise 20% deduction U/s 206AA apply.

8. Section 195 Implication
• 195(1) Any person responsible for paying to a
non-resident, not being a company, or to a
foreign company, any interest or any other sum
chargeable under the provision of this act (not
being income chargeable under the head
“Salaries” shall, at the time of credit of such
income to the account of the payee or at the time
of payments thereof in cash or by the issue of a
cheque or draft or by other any mode, whichever
is earlier, deduct income-tax thereon at the rate
in force .

9. Sec.195(1)-scope and chargeability
• What is responsible to deduct
tax?
• Who should the payee be?
• Status of non-resident ?
• Payments covered ?
• Point of deduction?
• Rate of TDS ?
• Any person (As defined u/s 2(31)
• All non resident whether having
presence in India or not
• Does not include RNOR
• Under sec.6
• In case of duel residence if the
breaker clauses exists-DTAA is
applied
• Any sum chargeable under the IT
act
• Except salaries and dividend u/s
1150
• At the time of credit or payment
whichever is earlier
• Relevant rate in force

10. Sec 195(1) –Scope and Chargeability
Particulars
• Amount payables to non-resident
(net of tax)
• Tax rate applicable
• Gross–up income : 100*100/(100-
20)
• Tax payable (INR 125*20%)
• Net amount paid to non-resident
(INR 125-INR 25)
Amount
• INR 100
• 20%
• INR125
• INR 25
• INR 100

11. Section 206AA Implications
“206AA. Requirement to furnish
permanent Account no. -(1)
Notwithstanding anything contained
in any other provisions of the act, any
person entitled to receive any