Rs 1 lakh fine if you dont declare music bought from phoren man

[ajay0722]

Congrats both of you!!!
On lighter note "You may get import duty refund from Amazon which can be use to pay tax"

 

[rankesh]

20 or 10 if applicable..I thought it was 10:indifferent14:

 

[rankesh]

Hi Ajay,

Not sure about import duty refund because didn't get any email regarding that so far,Or they will send when Itelm clears customs..Do I need to initiate that?

Thanks,
Rankesh

 

[ajay0722]

Hi Ajay,

Not sure about import duty refund because didn't get any email regarding that so far,Or they will send when Itelm clears customs..Do I need to initiate that?

Thanks,
Rankesh

I am not too sure... but based on the updates on the other thread, it takes times, you need to wait at least till the product is delivered .
when i checked with amazon for my projector they said it takes up to 60 Days after shipping, but i never got refund.

 

[hydra]

There's a more detailed article on this issue here: Form 15CA and Form 15CB Compliance for Foreign Remittances

It looks like Form 15CB (Certificate from CA) can be avoided in most cases of online payment (with expenditure planning), but Form 15CA cannot be avoided at all. More paperwork

 

[sound_cycle]

It looks like Form 15CB (Certificate from CA) can be avoided in most cases of online payment (with expenditure planning), but Form 15CA cannot be avoided at all.

Thanks Hydra for the info

• A signed printout of both Form 15CA and 15CB shall be submitted to the authorized dealer/banks, prior to remitting the payment.
  
• Authorized Dealers/ Banks are now becoming more vigilant in ensuring that such Forms are received by them before remittance is affected
  
• Form 15CA has to be mandatorily furnished by the remitter before making the foreign remittance.

and there is no exemption for audio h/w or music from itunes.

Projected scenario

So no more spur of the moment I-want-that-track-let-me-buy-it-NOW! possible. Fill a form online, get an authorization, figure out how to inform CC of authorization, let's just forget about it

ciao
gr

 

[ajay0722]

Still the question "Is credit card payment comes under the bank remittance"? as this amendment talks about the bank remittances only?

 

[mbhangui]

Look at
TAX BY MANISH: Note on Applicability of Form 15CA on all foreign transactions.

The following is excluded under rule 37BB
22 S1302 Remittance towards personal gifts and donations

 

[sound_cycle]

Remittance towards personal gifts and donations

"Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return."

from here

so maybe not

ciao
gr

 

[mbhangui]

Form 15CA & Form 15CB not required for Import Payments

Few banks have started asking for Form 15CA and Form 15CB sighting RBI circular of 2007 Remittances to non-residents Deduction of tax at source

CBDT Circular clearly states Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provision of the Act, shall furnish the following information (in form 15CA and Form 15CB)

Payments made against Import Purchases constitutes Business Income of the Overseas Supplier and is taxable in India only if it is attributable to a Business connection/Permanent Establishment in India as per Section 9(1)(i) and respective Double Tax Avoidance Agreement. Thus, in absence of any income chargeable to tax in India there cannot be any application of Section 195 & form 15CA and Form 15CB is not applicable for remittances towards import payments.

Few banks are taking a declaration from Importers in their forwarding letter that given Import payment amount is non chargeable to tax in India and carrying out transaction without Form 15CA and Form 15CB.

Read the Section "Taxability of payments to non-resident for imports" at http://www.caclubindia.com/articles/requirement-of-form-15ca-form-15cb-24080.asp

Even ICICI bank FAQ addresses this
ICICI Bank Answers | Outward Remittance

 

[manniraj]

Still the question "Is credit card payment comes under the bank remittance"? as this amendment talks about the bank remittances only?

I think CC payment may not fall under the remittance, please correct me if I am wrong. The remittance talking about is nothing but what they call under the banking terms "Outward Remittance" is normally given at the branch level by the customer to transfer foreign currency to the beneficiary account (converting INR to XXX foreign currency). This form normally has a declaration regarding the purpose and other details. The banks also collect Form A for any equipment that is being brought into India by doing a outward remittance. Again this form also specifies the item details and categories and other declarations.

 

[ajay0722]

Form 15CA & Form 15CB not required for Import Payments

Even ICICI bank FAQ addresses this
ICICI Bank Answers | Outward Remittance

yaa... but the same FAQ mentions -

5. What are the modes of doing an outward remittance?
Money can be sent abroad through the following modes:
Wire Transfer
Foreign Currency Demand Draft

Does it mean payment through CC is not a outward remittance?

 

[ajay0722]

JFYI...
I made some transaction to amazon in the first week of june through ICICI bank CC, no question raised?

though I don't know the consequences and keeping fingers crossed

 

[manniraj]

I would say its always the best bet to use PayPal wherever possible as your debit on the CC happens in equivalent INR for USD payments (even though the conversion rates at PayPal are higher when compared to direct CC payments) and the same is reflected on your CC. As your PAN is already registered along with your bank details (for crediting purpose) you are on safe side with PayPal adhering to all RBI norms. You also get added benefit of your sale is secured with the PayPal terms and dispute resolution.

 

[sound_cycle]

These are not new laws; such laws are not unique to India. The fines are.

The itunes ka 12 INR type "importer" is collateral damage.

So while it bites and pinches, grin and "bear" it seems to be the only way forward :sad:

edit: just logged into my bank account to make a third party transfer to wife's account. They require an explanation of why the transfer is made and there is a drop down with a set of choices. It is getting rather tiresome.

ciao
gr

 

[kartick]

Wow, this is rather absurd. The next thing would be a final confirmation on the bank transfer page asking you to re-think if you really really want to make this payment, is it necessary?, can you not avoid, rethink....ok if you still want to go ahead, please do.

Things should be simplified and not made into all of this what we are all being made to worry about.

'HI-FI' Idiot-ism.

 

[Fantastic]

Does this new regulation mean that if I buy some electronic equipment costing under Rs 50,000/- from Europe, I must fill Form 15A and Form 15 C .
We are not only in the clutches of the IT dept again ( with variable interpretation ) but also the CA who often is in collusion with the IT officials !

 

[isas123]

Any updates?

 

[sound_cycle]

Any updates?

It did not apply to AY 2015-16, so unsurprisingly no info/ declarations/ deductions were required in the efiling process.

I have been taken to collecting the invoices from apple etc for submission / declaration and payment of 20% of that total some day this time next year

ciao
gr

 

[manniraj]

It did not apply to AY 2015-16, so unsurprisingly no info/ declarations/ deductions were required in the efiling process.

I have been taken to collecting the invoices from apple etc for submission / declaration and payment of 20% of that total some day this time next year

ciao
gr

I think all these items were included in the initial ITR-V form that was released by the Finance Ministry but later they retracted and released a simplified form which excluded all these details.