Form 145 (Previously 15CA) for Software and SaaS Payments to Foreign Companies

Form 145 (Previously 15CA) for Software and SaaS Payments to Foreign Companies

Learn when Form 145 applies to foreign software, SaaS, cloud and technology payments. Understand how agreements, taxability, TDS, DTAA and remittance details affect compliance.

3 Sept 2026•
11 min read

Indian businesses regularly pay overseas companies for software licences, cloud services and SaaS subscriptions.

The tax treatment of these payments can sometimes be less straightforward than the payment description suggests.

Calling something a "software subscription" does not, by itself, determine the tax treatment.

Does Form 145 (Previously 15CA) Apply?

If the payment falls within the scope of Rule 220, the payer needs to consider the applicable Form 145 requirement before making the remittance. Form 145 is required for each qualifying remittance.

The first question should therefore be:

What exactly is the Indian business paying for?

For example, there can be a difference between:

  • A subscription to an online platform
  • A software licence
  • Cloud-hosting services
  • Technical support
  • A customised software service

The underlying agreement and actual rights/services being provided should be reviewed before deciding the tax position.

What Should Businesses Check?

Keep the following ready:

  • Software/SaaS agreement
  • Invoice
  • Description of the service
  • Foreign vendor details
  • Payment amount
  • Taxability analysis
  • Applicable DTAA, if relevant
  • TDS position
  • Bank/remittance details

A Simple Example

An Indian company pays an overseas SaaS provider ₹2 lakh annually for access to an online business platform.

Before remitting the money, the company should review the agreement and understand what it is actually receiving.

The fact that the invoice says "software subscription" should not be the only basis for deciding the tax treatment.

How 145146.com Can Help

SaaS businesses may have dozens of overseas subscriptions and vendors.

145146.com can help organise the bulk Form 145 preparation and uploading process, while tax assistance can help businesses work through transaction-specific compliance questions.

This is useful when the finance team is managing many foreign vendor payments rather than one isolated transaction.

Final Takeaway

For software and SaaS payments, look at the underlying arrangement, not just the invoice description. The tax treatment should be established before deciding how the Form 145 filing should be handled.