—Guide
Form 15CB for Telangana Businesses and Families: Common Remittance Scenarios
Common foreign remittance situations for Telangana businesses and families — IT and pharma service payments, software licences, NRI sale proceeds, and education — and which forms apply.
Telangana's IT, pharma and export businesses, and its many families with members abroad, send money overseas for a wide range of reasons. Here's how the forms work in common scenarios.
IT Companies Paying for Software and Cloud Services
Payments for software licences, SaaS subscriptions and cloud services raise the question of whether they're royalties. Following the Supreme Court's 2021 ruling in the Engineering Analysis case, payments for off-the-shelf software licences are generally not royalty under tax treaties. Each contract still needs analysis, and 15CB is usually needed for larger taxable payments.
Pharma Companies Paying for Testing and Regulatory Services
Hyderabad pharma companies pay foreign labs, consultants and regulatory agents. Whether these are fees for technical services taxable in India depends on the treaty — some treaties apply a 'make available' test. Document the services carefully.
Group Recharges
Indian subsidiaries of multinationals reimburse parent companies for costs and pay management fees. These need careful analysis for TDS, and transfer pricing documentation.
NRIs Selling Property
NRIs remitting sale proceeds of Hyderabad property from NRO accounts usually need Form 15CA and 15CB, showing that tax has been deducted or paid.
Families Paying for Education
Remittances by individuals under LRS for education don't generally need 15CA or 15CB, but TCS may apply above the threshold, with relief where the remittance is funded by an education loan.
Getting Help
Think Filing certifies foreign remittances for Telangana businesses and families.