All about Form 15CA & Form 15CB

All about Form 15CA & Form 15CB

What is Form 15CA and why do we have to file it?

Form 15CA is basically a declaration form to be filed by the person who is responsible to remit or send a certain amount to a specific person outside India.

Why Form 15CA is required to be filed?

 Income Tax Department has imposed this compliance on all the remitters in order to keep track on all the foreign remittances & their respective taxability.

As per Rule 37BB, every authorized bank is bound to ensure that all such forms are received by them prior making any foreign transfers.

 

Is it necessary to submit Form 15CA on all the foreign remittances?

 Form 15CA is required to be filled only where the amount payable is subject to income tax in India. If any amount which is not subject to tax than no Form 15CA shall be required. To make it more clear, Form 15CA is required when liability of income tax arises.

What is Form 15CB and Why is it necessary to file?

A person making payments to a Non Resident or a Foreign company has to submit Form 15CA. This certificate can be submitted through Income tax department online portal. However, in a few cases a Certificate from a practicing Chartered Accountant in Form 15CB is required before uploading Form 15CA online.

The Chartered Accountant is required to certify details such as nature and purpose of the remittance or transfer, TDS Rate applicability on it, TDS must have been deducted under section 195 of Income Tax Act 1961, If any Double Taxation Avoidance Agreement(DTAA) is applicable or not.

Cases where 15CA and 15CB is not required to be filed?

List of 33 Items has been prescribed in Rule 37BB in which the remittances are not required to be filed with Form 15CA and Form 15CB.

Here’s the list of those 33 Items

S.No Purpose code as prescribed by RBI Nature of Payment
1 S0001 Indian investment abroad – in equity capital (shares)
2 S0002 Indian investment abroad – in debt securities
3 S0003 Indian investment abroad – in branches and wholly owned subsidiaries
4 S0004 Indian investment abroad – in subsidiaries and associates
5 S0005 Indian investment abroad – in real estate
6 S0011 Loans extended to Non-Residents
7 S0101 Advance payment against imports
8 S0102 Payment towards imports – settlement of invoice
9 S0103 Imports by diplomatic missions
10 S0104 Intermediary trade
11 S0190 Imports below Rs.5,00,000 – (For use by ECD offices)
12 SO202 Payment for operating expenses of Indian shipping companies operating abroad
13 SO208 Operating expenses of Indian Airlines companies operating abroad
14 S0212 Booking of passages abroad – Airlines companies
15 S0301 Remittance towards business travel
16 S0302 Travel under basic travel quota (BTQ)
17 S0303 Travel for pilgrimage
18 S0304 Travel for medical treatment
19 S0305 Travel for education (including fees, hostel expenses etc.)
20 S0401 Postal services
21 S0501 Construction of projects abroad by Indian companies including import of goods at project site
22 S0602 Freight insurance – relating to import and export of goods
23 S1011 Payments for maintenance of offices abroad
24 S1201 Maintenance of Indian embassies abroad
25 S1202 Remittances by foreign embassies in India
26 S1301 Remittance by non-residents towards family maintenance and savings
27 S1302 Remittance towards personal gifts and donations
28 S1303 Remittance towards donations to religious and charitable institutions abroad
29 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30 S1305 Contributions or donations by the Government to international institutions
31 S1306 Remittance towards payment or refund of taxes
32 S1501 Refunds or rebates or reduction in invoice value on account of exports
33 S1503 Payments by residents for international bidding.

If you need Form 15CA or a Form 15CB, Experts will assist you.