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
Company Faces Withholding Tax and FEMA Concerns Over International Credit Card Purchases; Seeks CA Certification for Forex Transfers. A public listed company frequently engages in online international procurement using credit cards. Since December 2017, their finance team has raised concerns about potential issues with withholding tax and FEMA regulations. They have been advised that before making foreign remittances, they must obtain forms 15CA and 15CB from a Chartered Accountant to certify the forex transfer. A response from a participant suggested referring to the Master Directions issued in 2016 regarding the import of goods and services for further guidance. (AI Summary)
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