Certification of the tax liability on payments to non-residents
1. Obtain the backup documents of the underlying proposed remittances which is subject to withholding tax (foreign remittances made for costs incurred other than those which are exempt) under Section 195 of the Income tax Act read with rules thereunder. 2. Obtain an understanding of the transaction based on the review of the underlying documentation. Review of Inter-Company agreement, terms & conditions of transaction, relationship & role of parties in transaction, review of invoice. 3. Evaluate and analyse the requirements of Income tax and treaties entered into with respective countries with whom the economic benefit of the transactions accrues. 4. Analysis of applicable judicial precedences to ascertain the position in law for the respective transaction. 5. Obtain the tax residency certificate of the vendor (with whom the economic benefits of the transactions accrues) to whom such remittance is proposed to be made. 6. Advise on amount and remittance of withholding tax 6) Issue an opinion on Form 15CB, as prescribed by the Income Tax Act and rules thereunder on the applicability, correctness and remittance of such withholding tax.
1. Background and understanding to transaction 2. Business of client 3. Underlying documents and agreements including Board resolution, articles of the company, email correspondences 4. Bank remittance details 5. Tax residency certificate of the vendor 6. Q&A sessions with the management of the entity in order to understand the transaction better, as required 7. Details of similar remittances in past and earlier certifications, if any in this regard