Double taxation agreements
5 months ago
there is a company in canada giving loan to an indian company and that indian company is providing interest on that loan, the interest is transferred to USA bank account of the canandian company. what will be the tax implication as form 15CA and CB has been regarding the india Canada DTA .
A.Dear Sir,
You may contact the International Advocates who have knowledge of International transactions more particularly loan transactions.
You may contact the International Advocates who have knowledge of International transactions more particularly loan transactions.
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A.Dear Client
The interest income received by the Canadian company from the Indian company would be subject to taxation in Canada. The tax treatment would be based on Canadian tax laws and regulations.As per Indian tax laws, if an Indian company is paying interest to a non-resident entity, it is required to deduct withholding tax before making the payment. The rate of withholding tax would be as per the provisions of the India-Canada DTAA. The current rate specified in the DTAA for interest payments is generally around 10-15%, but it is essential to refer to the specific provisions of the treaty to confirm the rate. Form 15CA and 15CB are the documents required for furnishing information about any payment to a non-resident or foreign company. These forms are essential for ensuring compliance with Indian tax laws, particularly for transactions involving the remittance of income outside India. The specific details required in these forms may vary based on the nature and amount of the payment.
The interest income received by the Canadian company from the Indian company would be subject to taxation in Canada. The tax treatment would be based on Canadian tax laws and regulations.As per Indian tax laws, if an Indian company is paying interest to a non-resident entity, it is required to deduct withholding tax before making the payment. The rate of withholding tax would be as per the provisions of the India-Canada DTAA. The current rate specified in the DTAA for interest payments is generally around 10-15%, but it is essential to refer to the specific provisions of the treaty to confirm the rate. Form 15CA and 15CB are the documents required for furnishing information about any payment to a non-resident or foreign company. These forms are essential for ensuring compliance with Indian tax laws, particularly for transactions involving the remittance of income outside India. The specific details required in these forms may vary based on the nature and amount of the payment.
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