FORM 15CB Sec 195 in income tax act?

1) name & address of recipient & beneficiary: provide details of recipient , actual beneficiary- remittance may made third person.

2) obtain tax residency certificate issued tax authorities of country payee located. if payee branch, tax residency certificate in respect of parent company e.g. entity based in hongkong branch of company incorporated in u.s.a. or u. k. or japan etc.? [this information important determine tax treaty applicable]. important trc should mention recipient tax resident of home country “under particular tax treaty entered india”.

if tax residency certificate not available, obtain self declaration payee (sufficiently detailed) effect payee tax resident of particular taxing jurisdiction. make disclosure of reliance on payee’s self declaration in certificate.

3) status of recipient: whether individual, partnership firm, incorporated company, trust, association of persons (society etc), bank or government or government body or other status [taxability , rate of tax depends upon status of payee]

4) nature of remittance per agreement/document: whether royalty, fees technical services, professional fees, business income, interest, dividend, management fees, reimbursement of expenses or other income etc.

5) ascertain applicable rate of tds under applicable dtaa under domestic law.

6) in case remittance “net of net of taxes” agreements: whether tax payable has been grossed up? provide computation.

7) ascertain correct classification of income: so, following details & documents required-
a) contract payee , other supporting documents, correspondence/emails, broachers etc.
b) invoices , supporting vouchers.
c) in case of reimbursement of expenses, supporting invoices /voucher , other documentary proof
d) other document may in determining nature of payment/ quantum of income.

[classification of income important ultimate taxability , applicable rate of tax depends upon nature of income.]

8) in case remittances towards royalty, fts, interest, dividend, etc.:
please indicate-
a) clause of dtaa under remittance covered reasons

b) rate of tds under dtaa

c) if rate applied lower rate prescribed under dtaa, reasons thereof

if payment in nature of fees technical services, obtain self declaration of payee effect presence/activities in india not constitute pe in india in terms of article 5 of applicable tax treaty.

9) in case remittances supply of articles or things (e.g. plant, machinery, equipment, etc.):
please indicate –
a) whether recipient has pe in india?

b) whether, directly or indirectly, such activities of supply of articles or things done through pe?

c) whether sale of such articles or things has happened “in india”?

if payee has pe in india, obtain payee’s self declaration effect transaction in respect of payment being made, not directly or indirectly connected activities of pe in india.

d) if yes, amount of income comprised in such remittance liable tax in india? please provide basis/ computation of taxable amount.

e) if no, give reasons

obtain self declaration payee effect not have permanent establishment (pe) in india in terms of article 5 of applicable tax treaty.

10) in case remittance on account of business income :

pleaseindicate-
a. whether such income liable tax in india?
b. if yes, basis of arriving @ rate of tds
c. if no, reasons thereof.

11) date of deduction of tds, amount of tds deducted, exchange rate on date of deduction of tds ascertain correctness of amount of tds.

12) photocopy of receipted tds challan.

13) particulars of bank (name, branch, address, account no.) thru remittance made.

note: please note above general check list applicable remittances of common nature. however, additional documentation may required in special cases.

as on auditor documents verified before certify form 15cb sec 195 income tax act

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