Submission of No Objection Certificate in case of remittance to a non-resident

Tax withholding on non-resident remittances: remitters must file an undertaking and accountant's certificate to permit transfers without NOC.

Remitters may make payments to non-residents without an income-tax No Objection Certificate if they submit an undertaking to the Assessing Officer and a certificate from an independent accountant certifying the nature, amount and correct rate of tax deduction; authorised dealers or the RBI will forward copies to the Assessing Officer and retain copies for audit. The remitter remains liable to pay any shortfall of tax with interest and is subject to penalties or prosecution for defaults. Revised proformas require detailed particulars and legal basis for the rate of deduction, including treaty considerations and permanent establishment issues.