| Question And Answer | |
|---|---|
| Subject: | Whether amount transferred to Indian Bank account of non-resident, for the dividend payment, whether the company can file Form 15CB? |
| Category: | Income-Tax |
| Querist: | Sree Lekha |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Dividend, Non- Resident, TDS u/s 195 |
| Date: | June 10, 2021 |
Due to the introduction of TDS on dividend payments, the company has deducted TDS u/s 195 for the dividend payments to non-residents. Should the company also file Form 15CB for those cases? Also, please clarify what is the applicability of Form 15CB if the transfer is made to the Indian bank account of the non-resident?
Yes, Form 15CB is under Rule 37BB of the Income tax Rules, 1962 (Rules), which deals with Furnishing of information for payment to a non-resident.
There is no exemption for any transfer made to Indian Bank. Further the purpose of this Form is to ensure that the provisions of the Double Taxation Avoidance Agreement and the Income-tax Act, 1961 (Act) have been complied with in respect of tax deductions while making the payments.
Therefore, Form 15CB shall be applicable in the given case.