Hi- My CA files 15CB using current exchange rate from RBI site. The import invoice raised in USD by foreign provider. I used to make payment within 2-3 days after 15CB is filed. I pay using CARD to foreign service provider. There is difference between INR amount mentioned in 15CB and actual debit amount from my bank. Now During TDS return filing I RE-calculate the Grossedup amount , TDS Tax payable etc using the amount which actually debited from my bank account So the GROSSED UP amount and TDS Tax amount etc in my TDS return do not match with data in 15CA/15CB . and I pay TDS Tax as per my new calculation. Is it Okay ? Similarly when I pay IGST in RCM for import I pay IGST on the total amount . ( Total amount = amount debited from my bank + 10.3% TDS on it ). Is it Okay ? Or I should consider the amount mentioned in 15CB ? Thanks for your help
Dear Sir,
Form 15CB is for reporting purpose. There might be difference between the exchange rate used in Form 15CB and rate used at the time of actual payment. You should report the actual payment and TDS deduction in the TDS return.
In the case for RCM paid on import of goods/services. There might be difference between the exchange rate used in the invoice and actual date of payment. You need to pay RCM on the basis of Invoice only.
Thanks
Hi,
The amount of TDS and the figure in form 15CA/CB will not match due to exchange rate differences.
So need not to worry, Just pass an entry on actual amount which has been debited from your bank account and deduct TDS on that amount only.
Further, IGST should also be charged on the full amount including TDS.
So you have done absolutely right treatment in both the cases.
Thanks
Damini
You should consider the amount mentioned in Form 15CB.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Please consider tha amount on form 15CB.
regards,
Nikhil.
15CB is issued prior to the remittance of funds based upon the foreign exchange rate prevailing on the date of certificate or the nearest date prior to it. The actual remittance takes place later on the basis of foreign exchange rates prevailing at that point of time. Hence, there is bound to be difference between the amount proposed to be remitted as per 15CB and actually paid as debited by the bank. However, the difference is not substantial.
As regards the TDS liability it is based upon the payment or credit, whichever is earlier. You may therefore credit the party's account on the date of 15CB itself and deduct TDS accordingly. The difference in the remittance may be adjusted at the end of every month, as the date of remittance of TDS will be on the 7th of the succeeding month.
It's okay if differences exist.
Make sure TDS is deducted according to the rules. TDS has to be deducted on the earlier of invoice or payment. So take rate of exchange for TDS accordingly.
Hi,
These differences are genuine and bound to happen. The objective of 15CA/ CB is not to calculate TDS liability but to ensure to IT Department, whether such payments are taxable or not.
Ultimately TDS has to be deducted on the basis of actual amount paid only and nominal differences in the 15CA/ CB amount (which are declaration only and no statutory returns) and actual TDS Returns are going to be there in any case.
Regards,
