Software Royalty Payments under FEMA: Remittance and Tax Guide
Learn about withholding tax (TDS) and FEMA remittance declarations for software license and royalty payments overseas.
Software Royalty Remittances
Overseas payments for software licenses are classified as royalties and subject to double taxation treaty rules. You must deduct TDS (typically 10% under Section 195) and submit Form 15CA/15CB to your bank to approve the foreign remittance under FEMA rules.
Form 15CA and 15CB
Form 15CB is a certification by a practicing Chartered Accountant confirming the tax treaty benefits, while Form 15CA is a declaration filed by the remitter on the income tax portal before executing payments.
CA Amit Sharma
Verified Advisory LeadAmit is a Chartered Accountant (ICAI membership #409214) and FEMA compliance advisor with over 8 years of experience advising technology startups, digital marketing agencies, and remote professionals on zero-rated GST exports, DTAA declarations, and RBI inward remittance audits.
Disclaimer: The information provided above is for educational purposes only and does not constitute formal legal or financial advice. Please verify details using official circulars issued by the Central Board of Indirect Taxes & Customs (CBIC) and RBI.