Double Taxation Agreement – Agreement for avoidance of double taxation and prevention of fiscal evasion with foreign countries – Thailand

A new Double taxation avoidance agreement came into existence between Government of India and the government of the kingdom of Thailand for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income levied in both countries.

Transactions in relation quoting of Permanent account number (PAN) is mandatory

Each and Every person who is entering into transactions which are listed in the notification shall quote the PAN in all documents pertaining to the transactions. In the case of Minor, he shall quote the PAN of his Father or Mother or Guardian. The provisions of this rule shall not be applicable to the employees of Central Government, State government and consulate offices.

Furnishing of information for payment to a non-resident, not being a company, or to a foreign company

No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not require RBI approval. Further, the list of payments of specified nature which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports. A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds INR 5 lakh.

Foreign Exchange Regulation Update

Extension of Credit Facilities to Overseas Step-down Subsidiaries of Indian Corporates

The bank may extend there funded or non-funded credit facilities to step-down subsidiaries of the overseas subsidiaries of Indian Companies that may not be wholly owned, subject to certain conditions.

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