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Furnishing of information for payment to a non

Rule 220 — Furnishing of information for payment to a non

Parent Act Section(s): Section 2, Section 5, Section 10

Full Text

  1. Furnishing of information for payment to a non-resident, not being a company, or to a foreign company.— (1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the Act, shall furnish the following:— (a)information in Part A of Form No. 145, if the amount of payment or the aggregate of such payments, as the case may be, made during the tax year does not exceed ₹ 500000; (b)information in Part B of Form No. 145, if the amount of payment or the aggregate of such payments exceeds ₹ 500000 and where a certificate or order is obtained from the Assessing Officer under section 395(1) or (2); (c)information in Part C of Form No. 145, if the amount of payment or the aggregate of such payments exceeds ₹ 500000 and where a certificate in Form No. 146 from an accountant as defined in section 515(3)(b) is obtained, but where information in Part B of the said Form has been furnished, no information is required to be furnished in Part C of the said Form. (2) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No. 145.

(3) No information shall be required to be furnished for any sum that is not chargeable under the Act, irrespective of sub-rule (2), if,— (a) the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000 made under the said Act; or (b) the remittance is made by a Unit of an International Financial Services Centre referred to in section 147(1)(b); or (c) the remittance is of the nature specified in column C of the specified list below: Sl. Purpose code as per Nature of payment No. Reserve Bank of India A B C 1 S0001 Indian investment abroad - in equity capital(shares). 2 S0002 Indian investment abroad - in debt securities. 3 S0003 Indian investment abroad - in branches and wholly owned subsidiaries. 4 S0004 Indian investment abroad - in subsidiaries and associates. 5 S0005 Indian investment abroad - in real estate. 6 S0011 Loans extended to non-residents. 7 S0101 Advance payment against imports. 8 S0102 Payment towards import (settlement of invoice). 9 S0103 Imports by diplomatic missions. 10 S0104 Intermediary trade. 11 S0190 Imports below ₹500000. - (For use by Exchange Control Department offices). 12 S0202 Payment for operating expenses of Indian shipping companies operating abroad. 13 S0208 Operating expenses of Indian Airlines companies operating abroad. 14 S0212 Booking of passages abroad - Airlines companies. 15 S0301 Remittance towards business travel. 16 S0302 Travel under basic travel quota (BTQ). 17 S0303 Travel for pilgrimage. 18 S0304 Travel for medical treatment. 19 S0305 Travel for education (including fees, hostel expenses etc.). 20 S0401 Postal services. 21 S0501 Construction of projects abroad by Indian companies including import of goods at project site. 22 S0602 Freight insurance - relating to import and export of goods. 23 S1011 Payments for maintenance of offices abroad. 24 S1201 Maintenance of Indian embassies abroad. 25 S1202 Remittances by foreign embassies in India. 26 S1301 Remittance by non-residents towards family maintenance and savings.

27 S1302 Remittance towards personal gifts and donations. 28 S1303 Remittance towards donations to religious and charitable institutions abroad. 29 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments. 30 S1305 Contributions or donations by the Government to international institutions. 31 S1306 Remittance towards payment or refund of taxes. 32 S1501 Refunds or rebates or reduction in invoice value on account of exports. 33 S1503 Payments by residents for international bidding. (4) The information in Form No. 145 shall be furnished,— (a) electronically under digital signature in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems) under rule 332 and thereafter the said Form shall be submitted to the authorised dealer electronically or otherwise, prior to remitting the payment; or (b) electronically in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems) under rule 332 and thereafter a signed printout of the said Form shall be submitted to the authorised dealer electronically or otherwise, prior to remitting the payment. (5) An income-tax authority may require the authorised dealer to furnish a copy of Form No. 145 referred to in sub- rule (4)(b) for the purposes of any proceedings under the Act. (6) A quarterly statement, for each quarter of the financial year shall be furnished in respect of all remittances referred to in sub-rules (1), (2) and (3) by— (a) the authorised dealer in Form No. 147; or (b) a Unit of an International Financial Services Centre referred to in 147(1)(b), responsible for paying to a non-resident (not being a company) or to a foreign company, in Form No. 148, to the Director General of Income-tax (Systems) or the person authorised by him, within fifteen days from the end of the quarter of the tax year to which such statement relates. (7) For the purposes of this rule,— (a) “authorised dealer” means a person authorised as an authorised dealer under section 10(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) ; (b)“International Financial Services Centre” shall have the same meaning as assigned to it in section 2(q) of the Special Economic Zones Act, 2005 (28 of 2005); and (c)“Unit” shall have the same meaning as assigned to it in section 2(zc) of the Special Economic Zones Act, 2005 (28 of 2005).

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