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Are you making a payment to a non-resident? - Livemint
Do you download software, songs, or movies from the Internet from foreign websites, making payments through Netbanking or credit card? Do you buy goods such as books from global websites, such as eBay Global EasyBuy or Amazon.com? These transactions, along with many others, could now be financially hazardous for you, beginning 1 June 2015. A couple of amendments made in the last budget, which come into effect from 1 June 2015, are likely to cause this problem.
The first amendment is that details of such payments to non-residents are required to be filed online on the income tax departments website, irrespective of whether the payments are taxable or not. Earlier, the requirement of online furnishing of details was only required if the payment was taxable. Therefore, online furnishing of details is now effectively extended to payments for purchase of books or other goods from foreign vendors. If the amount of payment exceeds Rs.50,000, or the total payments in the financial year to one entity exceed Rs.2.50 lakh, a chartered accountants certificate also has to be obtained, certifying the tax deductible (even if there is no tax involved).
The second amendment is the introduction of a penalty of Rs.1 lakh for not furnishing such details online. The penalty is a flat amount, irrespective of the amount of tax involved.
Do you download software, songs, or movies from the Internet from foreign websites, making payments through Netbanking or credit card? Do you buy goods such as books from global websites, such as eBay Global EasyBuy or Amazon.com? These transactions, along with many others, could now be financially hazardous for you, beginning 1 June 2015. A couple of amendments made in the last budget, which come into effect from 1 June 2015, are likely to cause this problem.
The first amendment is that details of such payments to non-residents are required to be filed online on the income tax departments website, irrespective of whether the payments are taxable or not. Earlier, the requirement of online furnishing of details was only required if the payment was taxable. Therefore, online furnishing of details is now effectively extended to payments for purchase of books or other goods from foreign vendors. If the amount of payment exceeds Rs.50,000, or the total payments in the financial year to one entity exceed Rs.2.50 lakh, a chartered accountants certificate also has to be obtained, certifying the tax deductible (even if there is no tax involved).
The second amendment is the introduction of a penalty of Rs.1 lakh for not furnishing such details online. The penalty is a flat amount, irrespective of the amount of tax involved.