Tds and forms 15ca/cb in payment of rent to nro account of nri owner
Hi. I am planning to rent a house with a NRI owner. The total Rent is 70k per month but I will be paying 50% to husband and 50% to wife both of whom are NRI. I want to thus understand the process of TDS as well as applicability of Form 15CA and Form 15CB
TDS:
Q1-I know it is applcable at 31.2%. I will also need to take a TAN and pay TDS monthly on the date of rent payment and file quarterty return.
Q2- Is 15CA applicable to me? I have seen multiple conflicting views on this. Some CAs says it is not applicable as payment to NRO account is not remitting the money. While some say that 15CA is applicable on payment to NRI and not remittance. Need a concrete legal view. Also if there is ambiguity will it be safer to just file 15CA.Will it create any issues.
Q3- If 15 CA is applicable to me what would be the process? Let's say for Jan month I will pay rent by 31st Jan. And will deduct the TDS and also pay on 31st Jan. So when do I need to file 15CA. Should it be before making the payment of rent and TDS or after?
Q4- What would be the 'Nature of Remittance" and "RBI purpose code" in 15CA. Dont see any "Rent" option
Q5- What would be the TDS rate to be entered in 15CA- 30% or 31.2% as 1.2% is surcharge I guess.
Q6- My total payment is 840,000 per year but only 420,000 per year to each owners whom I will pay rent seperately in 2 bank accounts as well as deduct TDS separately. So will form 15CB become applible to me. As my aggregate payment is 840,000 but not to a single individual.