To Avail Buyer’s / Supplier’s Credit: E: firstname.lastname@example.org, M: +919825560186
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.
Residential status of a Company as defined u/s 6 (3) of Income Tax Act:
An Indian Company is always resident in India. A foreign company is resident in India only if, during the previous year, the control and management of its affairs are situated wholly in India. However, a foreign company is treated as non resident if, during the previous year, the control and management of its affairs are either wholly or partly situated out of India. The term “control and management” refers to “head and brain” which directs the affairs of policy, finance, disposal of profit and vital things concerning the management of a company. Usually control and management of a company’s affairs is situated at the place where meetings of its board of directors are held.
Deduction of tax at source from interest other than interest on securities u/s 194A of Income Tax Act in made in cases where payments are made to a resident:
Any person who is responsible of paying to a resident any income by way of interest, other than interest on securities, is required to deduct income-tax thereon at the rates in force.
However provisions of this section is not applicable where interest is credited or paid to any banking company, co-operative society engaged in banking business, public financial institutions, or notified institutions.
Based on above definitions, Indian Bank overseas branches becomes a resident and hence, whenever buyer’s credit interest payment is made to Indian bank overseas branches no TDS needs to be deducted and hence, form 15 CA and 15 CB is not required to be submitted.
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