Is Form 15CA/CB required for all non-resident payments?

Not for all payments. About 33 categories under Rule 37BB Schedule III are exempt. For other payments above Rs 5 lakh per year with no TDS, both Form 15CA and Form 15CB (CA certified) are required.

International Tax Services in India - Cross-Border Tax Advisory | Expert CA

International Tax Services in India

Q: What is the difference between domestic tax law and DTAA?

Domestic law taxes residents globally and non-residents on India-sourced income. DTAA determines which country has primary taxing rights and reduced withholding rates. Taxpayers claim DTAA rates by providing TRC and Form 10F.

Cross-Border Tax Advisory, DTAA Planning, Transfer Pricing & Withholding Tax Compliance

International taxation governs which country can tax income when it crosses borders -- whether it is an Indian company paying royalties to a foreign parent, an NRI selling Indian property, or an individual receiving foreign salary. India's international tax framework is governed by the Income Tax Act, FEMA, bilateral DTAAs, and OECD-aligned transfer pricing rules. Our international tax team advises Indian businesses with foreign operations, foreign companies with Indian presence, NRIs with Indian assets, and residents with foreign income.

Our International Tax Services

DTAA Advisory & Planning

Analysis of applicable India tax treaty to determine reduced withholding rates on dividends, interest, royalties, and fees for technical services -- with TRC and Form 10F documentation support.

Transfer Pricing Compliance

Transfer pricing documentation, benchmarking analysis, master file/local file preparation, and Form 3CEB filing for companies with international related-party transactions above prescribed thresholds.

POEM Analysis

Place of Effective Management analysis for foreign companies to determine whether they are treated as Indian residents -- covering board meeting locations, decision-making processes, and POEM mitigation strategies.

Withholding Tax & Form 15CA/CB

Advisory on correct TDS rates on cross-border payments -- royalties, fees for technical services, interest, dividends -- and Form 15CA/CB preparation for remittances to non-residents.

Foreign Tax Credit (Form 67)

Filing Form 67 to claim credit for taxes paid in foreign countries on income also taxable in India -- preventing double taxation for Indian residents with foreign income or investments.

BEPS & CbCR Reporting

BEPS compliance, Country-by-Country Report (CbCR) filing, and master file obligations for qualifying multinational enterprise groups with Indian constituent entities.

Who Needs International Tax Advisory?

Indian companies with overseas subsidiaries: Transfer pricing, POEM, dividend repatriation withholding
Foreign companies with Indian operations: PE exposure, income attribution, TDS compliance
NRIs with Indian assets: Capital gains on Indian property, rental income, DTAA benefits
Indian individuals with foreign income: Salary, dividends, interest -- Schedule FSI and TR in ITR
Seafarers and expats: Residential status, exempt salary, foreign asset reporting
Investors under LRS: FEMA compliance, foreign asset reporting, overseas investment advisory

Frequently Asked Questions

What is the difference between domestic tax law and DTAA for cross-border income?

India's domestic Income Tax Act taxes residents on global income and non-residents on India-sourced income. When a taxpayer is also taxed in another country on the same income, the DTAA determines which country has primary taxing rights, what withholding rate applies, and how relief from double taxation is given. The DTAA rate is beneficial when lower than the domestic rate -- taxpayers claim it by providing a Tax Residency Certificate (TRC) and Form 10F to the Indian payer. Domestic law applies where no DTAA exists or where it is more beneficial.

What is a Permanent Establishment (PE) and why does it matter for foreign companies?

A PE is a fixed place of business through which a foreign company carries on business in India -- an office, factory, branch, or dependent agent. Once a PE exists, profits attributable to it become taxable in India. Foreign companies often structure Indian operations to avoid PE creation while still conducting business -- using liaison offices or commissionaire arrangements. DTAA PE definitions may differ from domestic law PE rules under Section 9(1)(i).

Is Form 15CA/CB required for all payments to non-residents?

Not for all payments. Rule 37BB lists approximately 33 payment categories exempt from Form 15CA/CB requirements. For most other payments, the requirements depend on amount: payments up to Rs 5 lakh per year do not require Form 15CB (only Part A of Form 15CA); payments above Rs 5 lakh where no TDS is deducted require both Form 15CA and Form 15CB certified by a CA. The bank will not process the remittance without the FRRN (Foreign Remittance Reference Number) generated by the filed Form 15CA.

How is foreign tax credit claimed in an Indian ITR?

Foreign Tax Credit (FTC) is claimed via Form 67, which must be filed on the Income Tax e-filing portal on or before the ITR due date. Form 67 requires the foreign income amount, foreign tax paid, applicable DTAA article, and the tax identification number in the foreign country. The credit is capped at the Indian tax attributable to the foreign income -- excess foreign tax is not refunded. TRC and foreign tax payment proof must be maintained as supporting documents.

Cross-Border Tax Issues? Our International Tax Team Has You Covered.

From DTAA planning and transfer pricing to Form 15CA/CB and foreign tax credit -- our specialists handle all aspects of international taxation for businesses, NRIs, and individuals.