9911796707
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 ..... lanation 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 ..... 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 accompanied by a certificate from an accountant other than an employee as defined in the Explanation below section 288 of the Income-tax Act, 1961 in the form annexed to the said Circular. The person making the remittance had to submit the undertaking along with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 by the person authorised to sign the income-tax returns of the applicant, together with a certificate (in duplicate) from the Accountant (other than the employee of the applicant) as defined in the Explanation below section 288 of the Income-tax Act, 1961 in forms prescribed in the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 being requested to circulate the amended format of the undertaking and the certificate to their authorised dealers. 4. This circular comes into effect with immediate effect. Annexure A Form & Application for remittance under section 195 of the Income-tax Act 1. Name and Address of the Applicant and princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me 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 ..... ..... Date of Deduction ...... ..... 4. In case the remittance as indicated in (2) above is net of taxes, whether tax payable has been grossed up? If so, computation thereof may be indicated. : 5. If the remittance is for royalties, fee for technical services, interest, dividend, etc., the clause of the relevant DTAA under which the remittance is covered along with reasons and the rate at which tax is required to be deducted in terms of such clause of the applicable DTAA. : 6. In case that tax has been deducted at a rate lower than the rate prescribed under the applicable DTAA, the reasons thereof. : 7. In case remittance is for supply of articles or things (e.g., plant, machinery, equipment, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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