Online International Procurement via Credit Card

[Deepak Kurup]

Hi,

We are a public listed company, and due to the nature of our work, we often do online international procurement with credit card. Since December 2017, our finance team is raising lot of concerns for the same and we wanted clarity on the same. As per finance team, we cannot make overseas procurements through credit card as there are withholding tax and FEMA issues. Before any foreign remittance is made, we have to get form 15CA and 15CB from a CA certifying the forex transfer.

Kindly advise.

Regards

Deepak

[YAGAY and SUN]

Please read Master Directions as issued in 2016 on import of goods and services.

AI Summary

FEMA compliance: reference to Master Directions guides overseas procurement by credit card and related withholding tax procedures. Query whether corporate credit card online international procurement constitutes a foreign remittance subject to FEMA compliance and withholding tax procedures requiring Form 15CA and Form 15CB; respondent directs consultation of the 2016 Master Directions on import of goods and services for governing guidance.