Overview
Cross-border transactions raise questions of which country can tax the income, at what rate, and how double taxation is relieved. India has Double Taxation Avoidance Agreements (DTAAs) with more than 90 countries, which can reduce withholding tax when conditions are met.
Payments to non-residents require withholding of tax, Form 15CA/15CB compliance before remittance, and in related party cases, transfer pricing documentation and reporting.
Who needs this service
Legal and regulatory framework
- Income-tax Act, 2025 and Income-tax Act, 1961 (earlier years)
- Double Taxation Avoidance Agreements and the Multilateral Instrument
- Transfer pricing provisions and rules
- FEMA, 1999 and RBI regulations on remittances
Scope of services
Withholding and remittances
- Taxability of payments to non-residents
- DTAA rate analysis; Tax Residency Certificate and Form 10F
- Forms 15CA and 15CB
Treaty and structuring
- Permanent establishment analysis
- Business connection and source rules
- Foreign tax credit
Transfer pricing
- Benchmarking of international transactions
- Transfer pricing documentation
- Accountant's report on international transactions
Foreign assets
- Reporting of foreign assets and income in returns
- Black Money Act exposure review
How the engagement works
- Transaction reviewNature of payment and the parties involved.
- Law and treaty analysisDomestic law and DTAA position.
- DocumentationTRC, Form 10F, certificates and TP documentation.
- ComplianceWithholding, remittance forms and reporting.
Documents typically required
Key forms and due dates
| Item | Timeline |
|---|---|
| Form 15CA / 15CB | Before each remittance |
| Transfer pricing report | Before the return due date for TP cases (30 November) |
Deliverables
- Tax opinion or memo
- Form 15CB
- Transfer pricing documentation and report
The scope of each engagement is agreed in writing and depends on the nature, size and regulatory requirements of the entity.
Frequently asked questions
When is Form 15CB required?
For remittances to non-residents that are taxable in India above the prescribed limits, a Chartered Accountant certifies the taxability and rate in Form 15CB before the remittance.
How do I claim a lower treaty rate?
The payee must be eligible under the DTAA and provide a Tax Residency Certificate and Form 10F, among other conditions.
What is a permanent establishment?
A fixed place of business or dependent agent through which a foreign enterprise carries on business in India, which can make its profits taxable in India.