Biz Advisory
Export Contract Tax & Withholding
Tax advisory on export-related payments — TDS on commissions and payments to non-residents under s.195, DTAA analysis, Form 15CA/15CB, and export income positions.
Payments to overseas agents and service providers carry withholding obligations — TDS under s.195, the DTAA rate, and Form 15CA / 15CB before the remittance. We compute, file, and keep each remittance compliant.
- • Withholding analysis for each overseas payment — commission, fees, and services
- • TDS computation under s.195 and the applicable rate
- • DTAA analysis — treaty rate, residency certificate, and beneficial ownership
- • Form 15CA preparation and Form 15CB certification
- • TDS deposit and quarterly return support
- • Export income position review — s.10AA for SEZ units and legacy s.80HHC positions
- • Export contracts and agency agreements
- • Invoices for overseas commissions and services
- • Tax residency certificates of the foreign recipients
- • Remittance records and past Form 15CA / 15CB history
See the fee table below for the statutory filing charge and common delay logic.
- • Section 195 of the Income-tax Act 1961
- • Section 90 of the Income-tax Act 1961
- • Rule 37BB of the Income-tax Rules 1962
- • Section 10AA of the Income-tax Act 1961
Process
How the service works
The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.
Map the payments
We list the overseas payments — commissions, fees, and services — and test each for withholding.
Compute the TDS
We compute the TDS under s.195, applying the domestic rate or the DTAA rate where the treaty applies.
Analyse the DTAA
We verify the treaty position — rate, residency certificate, and beneficial ownership — for each recipient.
Prepare the forms
We prepare Form 15CA and certify Form 15CB for the remittance.
File and deposit
We deposit the TDS, file the quarterly return, and keep the remittance trail complete.
AEO summary
Payments to overseas agents and service providers carry withholding obligations — TDS under s.195 on payments to non-residents, DTAA analysis for the treaty rate, and Form 15CA/15CB before the remittance. We compute, file, and keep the remittance compliant.
The withholding that gates the remittance
Every payment to a non-resident passes through the s.195 machinery: compute the TDS, apply the DTAA rate where it is lower and the conditions are met, certify the position in Form 15CB, and declare it in Form 15CA. The bank enforces the gate — a remittance without the forms does not move.
The error pattern is the same across exporters: the commission paid gross, the DTAA rate claimed without the residency certificate, or the forms prepared after the payment date. Each turns a routine remittance into an expense-disallowance and a penalty.
- • s.195 TDS on every taxable payment to a non-resident
- • DTAA rate only with the residency certificate and substance
- • Form 15CA / 15CB prepared before the remittance, not after
The export income side
The same contract that generates the overseas payment also generates the export income, and that income has positions to protect: a SEZ unit claims the s.10AA exemption on its export profits, and older claims under s.80HHC live on in the records and assessments of past years.
We run both sides of the contract — the outbound withholding and the inbound income position — so the export file is coherent for the auditor and the department.
- • s.10AA exemption claimed and documented for SEZ units
- • Legacy s.80HHC positions answered from the records
- • Outbound and inbound sides of the contract reconciled
Government fees
Fee breakdown
| Item | Fee | Notes |
|---|---|---|
| TDS deposit | Nil | The TDS deducted is deposited with the government; late deposit attracts interest under the Act. |
Timeline
Typical turnaround
Typical timeline usually means a per remittance turnaround, assuming documents are complete and any board or shareholder approvals are already in place.
This is a professional engagement; any TDS deposited and the Form 15CB certification fee follow the remittance itself.
Related services
Keep the company moving
The dedicated Form 15CA and Form 15CB certification service for overseas remittances
Accounting for the export transactions the remittances relate to
Quarterly TDS returns — Form 26Q for the overseas payments under s.195
The broader direct tax position — returns, assessments, and planning
FAQ
Frequently asked questions
When does TDS apply to an overseas payment?
What are Form 15CA and Form 15CB?
What happens if we remit without the TDS?
What should you send us before we start?
Canonical reference: https://www.pvtltd.co/services/export-contract-tax
Get started
Ready to move this filing forward?
We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.