Topics
- Buyers Credit (56)
- Buyers Credit Accounting (1)
- Buyers Credit on Precious Metals (6)
- Currency Hedging (3)
- Form 15CA and Form 15CB (5)
- Income Tax (6)
- Letter of Comfort (LOC) / Letter of Undertaking (LOU) (5)
- Letter of Credit (LC) (2)
- LIBOR (7)
- Others (5)
- RBI Regulation & Circulars (18)
- Suppliers Credit (33)
- Withholding Tax (8)
-
Articles
- Change in LIBOR Tenures and Impact on Trade Finance
- Swift Code & Messages Used in Buyers Credit Transaction
- Tax Residency Certificate Not Required in Prescribed Format
- Surcharge and Education Cess on Withholding Tax
- Transfer of Limits from One Bank to Another : Buyers Credit Rollover Process
- Buyers Credit on Import of Precious and Semi Precious Stone
- Myanmar Economic Sanctions – Background, Recent Relaxation & Trade Finance
- Buyers Credit on High Sea Sales Transaction
- Withholding Tax (WHT) is applicable on Suppliers Credit Transactions
- How to Calculate Total Cost of Buyers Credit
- Bank Finance for Purchase of Gold
- Buyers Credit with 6 Month Libor Reset
- Review of Trade Credit All-In-Cost Ceiling
- Impact of Libor Review on Trade Finance in India
- Pushing the reset button on LIBOR – Speech by Martin Wheatley
- Certificate of Tax Residency under DDTA (Withholding Tax)
- Buyers Credit on Jewellery
- Overdue Interest and Late Payment Charges on Buyers Credit
- Prepayment of Buyers Credit
- Trade Credit Extended Upto 5 Years for Infrastructure Firms
- Difference Between EURIBOR & EUR Libor
- Banks Insisting of Forward Booking for Buyers Credit Exposure
- 5% WHT as per Sec 194LC not applicable to Buyers Credit
- Form 15CA & 15CB Not Applicable on Interest payment to Indian Bank Branches
- Basel III – Future Impact of Trade Finance
- Suppliers’ Credit or Buyers’ Credit is not available for Merchanting Trade
- IMO Number and Its importance in case of Buyers Credit
- Country-wise Double Taxation Summary Chart on Interest
- Consequence of Non Deduction of Withholding Tax (WHT / TDS)
- Form 15CA and 15CB under Section 195 of Income Tax
- OFAC Countries & Implication on Buyers Credit
- Review of all-in-cost ceiling – Trade Credit
- Buyers Credit All-In-Cost Ceiling may move back to L+200bps from 01/04/2012
- Buyers Credit for Imports Under Direct Documents
- Difference between Buyers Credit and Letter of Credit (LC)
- Comprehensive Guidelines on Foreign Exchange Derivatives
- Recent Changes to India’s Currency Forward Contract Norms for Hedging
- RBI Increase Buyers Credit All-in-Cost Ceiling
- Buyers Credit Accounting Entries
- Infrastructure Companies – Bridge Finance before availing ECB
- Buyers Credit on Capital Goods
- Buyers Credit Interest Rate (LIBOR + Margins)
- Bankwise Letter of Comfort / Undertaking Charges
- Buyers Credit on Gold Import
- LIBOR Rates: Brief, History, Currencies, Maturities
- Transaction where Buyer’s Credit is Restricted
- Sample format of Letter of Undertaking / Comfort (LOU / LOC)
- Import of Platinum, Palladium, Rhodium, Silver
- Buyer’s / Supplier’s Credit on Rough, Cut and Polished Diamonds
- Buyer’s Credit Rollover
Old Article
- Procedure for Buyers Credit in India
- RBI Trade Credit (Buyers/Suppliers Credit) Circular Extract
- WHT (Withholding Tax) on interest on Buyers Credit
- Letter of Comfort / Undertaking (LOC/LOU) Charges
- Buyer’s Credit in Cross Currency
- Supplier’s Credit India – Meaning & Process
- Difference between Buyer’s Credit and Supplier’s Credit
- Buyer’s / Supplier’s Credit Consultants
About the Author
Tag Archives: Withholding Tax
Tax Residency Certificate Not Required in Prescribed Format
In September 2012, CBDT had prescribe a format in which Tax Residence Certificate (TRC) was required from April 2013. In the Amendments to Finance Bill 2013, requirement of prescribed format has been done away with. Continue reading
Surcharge and Education Cess on Withholding Tax
Withholding Tax rates may be limited by application of a tax treaty. The surcharge and education cess will not apply where the withholding tax is limited by a tax treaty. Continue reading
Posted in Buyers Credit, Suppliers Credit, Withholding Tax
Tagged Buyers Credit, Double taxation, DTAA, Finance, Import Finance, SME Finance, Tax treaty, Withholding Tax
Leave a comment
Withholding Tax (WHT) is applicable on Suppliers Credit Transactions
Withholding Tax is applicable on Suppliers Credit Under Sec 195 of Income Tax Act 1961. Additionally DTAA treaty of the respective country has to be referred for the definition of interest to arrive at final conclusion. Continue reading
Posted in Suppliers Credit, Withholding Tax
Tagged article, Double taxation, Finance, Import Finance, International trade, SME Finance, Suppliers Credit, WHT, Withholding Tax
2 Comments
Certificate of Tax Residency under DDTA (Withholding Tax)
From April 2013 onwards when buyers credit is taken from foreign bank, importer will also need to collect Certificate of Tax Residency in specific format from these foreign banks to claim benefit of lesser Withholding Tax (WHT) rates under DDTA or else standard rate of 20% will be applicable. Continue reading
5% WHT as per Sec 194LC not applicable to Buyers Credit
Section 194 LC for Tax Deduction by Indian Specified Company on Interest paid to Non resident / Foreign Company is not applicable to Buyers Credit. Continue reading
Form 15CA & 15CB Not Applicable on Interest payment to Indian Bank Branches
As per Income Tax circular 04/2009 dated 29th June, 2009 (Circular Link provided below), Form 15CA and 15CB Certificate under Section 195 of Income Tax is required to be submitted in cases where payments are made to a non-resident. Continue reading
Country-wise Double Taxation Summary Chart on Interest
To Avail Buyer’s / Supplier’s Credit: E: sanjaymandavia@gmail.com, M: +919825560186 Below Country-wise double taxation summary chart provides Tax rate and Article reference number applicable on interest payments to beneficiary outside India. Same will be useful at the time of filling up Form … Continue reading
Consequence of Non Deduction of Withholding Tax (WHT / TDS)
Disallowance of the amounts paid under Section 40 (a) (i). It should be noted that the scope of the section dealing with payments to non residents is wider than that of 40 (a) (ia) which deals with residents. Continue reading
Posted in Buyers Credit, Form 15CA and Form 15CB, Income Tax, Withholding Tax
Tagged Finance, Form 15CA, Form 15CB, Tax, Tax treaty, Taxation, Withholding Tax
Leave a comment
Buyer’s Credit from Mauritius Based Foreign Bank
To avail Buyer’s / Supplier’s Credit…E: sanjaymandavia@gmail.com, M: +919825560186 Since last week or so, Foreign bank branches based out of Mauritius are either not able to quote or are quoting above the RBI prescribed ceiling for 6 months LIBOR + 200 … Continue reading
Difference between Buyer’s Credit and Supplier’s Credit
Difference between buyers credit and suppliers credit are based on criteria like, Mode of payment, LC clauses, arrangement process, and cost involved. Continue reading
WHT (Withholding Tax) on interest on Buyers Credit
Under Sec 195 of Income Tax Act 1961, Tax is required to be deducted on the interest amount paid by the Indian corporate to overseas lenders (bank / suppliers) on the loans taken. Impact on Importers and Process flow of payment of Withholding Tax Continue reading
Posted in Buyers Credit, Withholding Tax
Tagged article, Business, Buyers Credit, Finance, India, Tax, Tax treaty, Taxation, Updates, WHT, Withholding Tax
7 Comments
