The ICAI has published a Guide on Withholding Taxes (TDS) on Payments to Non-Residents under Section 195 of the Income Tax Act, 1961, and Forms 15CA and 15CB to ensure compliance with the Income Tax Act and Rules.
The first edition of this publication, “Withholding Taxes under Section 195 of the Income-tax Act, 1961 and Form 15CA/CB,” from the ICAI, is now available and is jam-packed with details on the various withholding arrangements and how to report them. In addition to discussing the use of multilateral agreements, this publication compares the applicability of withholding under Section 195 to withholding under the equalisation levy. Additionally, the most recent circulars, notifications, and real-world case studies are included for the members’ benefit.
This ICAI publication is designed to assist Members in certifying or validating payments made to non-residents by a resident or non-resident assessee after proper tax withholding or deduction at source (TDS) in accordance with Section 195 of the Income Tax Act. Furthermore, this publication will assist members in reporting transactions involving payments to non-residents, if such a sum is taxable.
ICAI Guide on TDS u/s 195, Forms 15CA/15CB: Withholding Taxes on Payments to Non-residents (dt. 17/01/2023)