LAW DECODED

The confusion creeps in because the first page of FLA return [which is an excel based utility] asks for CIN number which is applicable to a company. Therefore, LLP is required to send mail:  surveyfla@rbi.org.in (RBI helpdesk – 022-26578662/8214) to create dummy CIN until RBI amend the FLA return format.

Making foreign payments are very frequent in nature, but before making any foreign payment you must keep in mind the compliances under various laws such as: 1. Under Income Tax Laws :  Section 195 of the Income Tax Act requires to deduct TDS if the sum payable is taxable in India. To know this you must check Section 5, 6 and 9 of the Income Tax Act along with section 195 to get the clear picture. Deciding at what rate you should deduct TDS , is also a crucial task. For this, you must check the DTAA [Double Taxation Avoidance Agreement] between India and the Country where you remitting the funds.  Apart from TDS liability and its TDS return filing, you must also intimate the tax authority by filing form 15 CA and 15 CB [CA Certificate] . However, there are certain notified transactions where you are not required to report such transactions [ Rule 37 BB of Income Tax Rules ]. The wording of section 195 is so wide that it covers almost each and every foreign payment barri