TRC/ PE Declaration Format in respect of Form 15CA/ 15CB u/s 195(6)

Format of Tax Residence Certificate/ PE Declaration to be received from Foreign Seller his letter head or with any variation as may be agreed with him :

(On letter head of the Vendor)

TO WHOM IT MAY CONCERN

This is to confirm the following:

1.       That we are a Company / LLC / Partnership Firm registered at …………………. (country name) and are a tax resident of  …………………… (Country Name) . Our principal place of business is at  ……………………………… (country name) . A copy of our incorporation certificate is attached herewith (or any other proof of being foreign resident ,if shared by them)

2.       We are not having any Permanent Establishment or liasion office in India or any business connection in India.

3.       That the payment of …………………… $ being remitted to us against our invoice no …………………………… dated …………………. is towards sale of ……………………….. and as such is in the nature of business income taxable in the country of our residence i.e. ……………………. (country name) .  The said payment is not in the nature of fees for technical services.

4.       In view of the aforesaid, no income accrues or arise in India and payment against our invoice be released without deduction of withholding taxes.

For ABC 

Authorised Signatory

You may click here for the Declaration in Microsoft Word Format

Is Form 15CA & 15CB Requirement Mandatory in case of Payments against Import of Goods?

The straight answer to this question is YES.

Section 195(6) was amended in the Finance Act, 2015 and accordingly, the Form 15CA and 15CB are mandatorily filed for all remittances to non-residents, whether chargeable to tax in India or not. All the assessees are required to submit Form 15CA and 15CB for all outward cross border remittances INCLUDING THOSE AGAINST IMPORTS with effect from 01.06.2015.

There is now a penalty of ONE LAKH RUPEES in case of non-furnishing of information or furnishing of incorrect information under section 195(6) (i.e. form 15CA and form 15CB) of the Act.

You may click here for the format of Tax Residence Certificate/ PE Declaration to be received from Foreign Seller his letter head or with any variation as may be agreed with him.