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TMI BlogSubmission of No Objection Certificate in case of remittance to a non-residentX X X X Extracts X X X X X X X X Extracts X X X X ..... ee) as defined in the Explanation below section 288 of the Income-tax Act, 1961 in the Form annexed to this circular. The person making the remittance shall submit the undertaking along with the said certificate of the Accountant to the Reserve Bank of India, who in turn, shall forward a copy thereof to the Assessing Officer. 3. The contents of this Circular may be brought to the notice of all the officers working in your charge. Undertaking To .............................................................................. (Designation of the Assessing Officer) .............................................................................. .............................................................................. I/We........................................................................................................................................................... (Name, address Permanent Account Number) propose to make a remittance of.................................................................................................. (Amount) being..................................................... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ............................ (Name and complete address of the person to whom the remittance is being made) and the rate at which the tax is deductible at source thereon and hereby certify that a sum of Rs........................... has been deducted as tax at the appropriate rate and has been paid to the credit of the Government. ................................................. Accountant Place...................... Date....................... Circular : No. 759, dated 18-11-1997. Clarification 1 1. Circular No. 759 dated 18-11-1997 was issued by the Board to dispense with the requirement of submission of a No Objection Certificate from income-tax authorities for remittance to a non-resident as required by the Reserve Bank of India (RBI). In paragraph 2 of the said Circular, it was stated that henceforth remittances may be allowed by the RBI without insisting upon a No Objection Certificate from the Income-tax Department provided the person making the remittance furnished an undertaking in duplicate addressed to the Assessing Officer which was accomp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of filing an undertaking along with a certificate prescribed in Circular No. 759 would not be applicable. 5. The contents of this Circular may be brought to the notice of all the officers working in your charge. Circular : No. 767, dated 22-5-1998. Annex A.D. (M.A. Series) Circular No. 48, dated 29-11-1997 , issued by the Reserve Bank of India. 1. Presently, authorised dealers have been delegated powers to allow certain types of remittances, subject to, among other things, production of NOC/Tax Clearance Certificate from income-tax authorities. Similarly, Reserve Bank also, while approving remittances for certain purposes, has been insisting on NOC/Tax Clearance Certificate from income-tax authorities. This procedure has been revised as notified by the Central Board of Direct Taxes, in their Circular No. 759 [F. No. 500/152/96-FTD] dated 18th November, 1997. In terms of the new procedure, a person making remittance of foreign exchange would not be required to produce NOC/Tax Clearance Certificate from income-tax authorities instead, the applicants have to submit an undertaking, in duplicate, addressed to the Assessing Officer, which should be signed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of the provisions of the Act and the applicable DTAC. The certificate does not provide for necessary details or the reasons for adopting a certain rate for deduction of tax. This results in unnecessary calling of information from the assessees at a later stage and thus gives rise to an avoidable perception of grievance on the part of the tax payer. Therefore, in order to streamline the procedure as well as to ensure the correct deduction of tax at source, the proforma of the undertaking to be given by the remitter and the certificate to be issued by a chartered accountant have been re-considered and new formats are being prescribed which are enclosed as Annexures A and B to this circular. The revised proforma for undertaking as well as the certificate shall to apply in terms of Circular No. 759, dated 18-11-1997 of CBDT. Other requirements of the Circular remain unchanged. It is reiterated that the persons making the remittances shall submit the undertaking and certificate as per Annexures A and B to the Reserve Bank of India/authorised dealer banks, who shall in turn forward the same to the Assessing Officer mentioned in the undertaking. 3. The Reserve Bank of India is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ................................................ and M/s. ........................................................ requiring the remitters beneficiary above remittance as well as the relevant documents and books of account required for ascertaining the nature of remittance and for determining the rate of deduction of tax at source as per provisions of section 195. We hereby certify the following : 1. Name and address of the beneficiary of the remittance and the name of the foreign country to which remittance is being made. : 2. Amount of remittance is foreign currency indicating the proposed date/month and bank through which remittance is being made. : 3. Details of tax deducted at source, rate at which tax has been deducted and date of deduction. : Foreign Currency Indian Currency Amount to be remitted ..... ..... Tax deducted at source ..... ...... Actual Amount remitted ..... ..... Rate at which deducted . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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