CA Pratibha Goyal | Dec 5, 2019 |
15CA/CB PROCEDURE : UNDERSTANDING FORM 15CA/CB
Hi Friends,
Through this small article I would like to give a brief understanding as to how a professional can arrive on decision of which part of form 15CA to use and if form 15CB is required.
1. So First thing that we need to check is Is Payment to a NRI Chargeable to tax
Simple Rule for checking this is, if the income of NRI accrues in India, then it will be chargeable to tax in India. We need to check our transaction as per Section 9 of Income Tax Act.
Then we also need to check if the income is exempt as per Section 10 of Income Tax Act.
Now if the payment to a NRI not Chargeable to tax we further need to check that, if Prior approval of RBI is required
If the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000 then you don’t need to file form 15CA.
You May Also Refer : Filling 15CA in case of foreign remittance in Income Tax Act
If the remittance is of the nature specified below then you don’t need to file form 15CA:
| Sl. No. | Purpose code as per RBI | Nature of payment |
| (1) | (2) | (3) |
| 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. |
Part D of Form 15CA will be filed if payment to a NRI not Chargeable to tax [Other than above specified payments]
2. Yes the Payment to a NRI is Chargeable to tax!
Rate of Tax : Rate as per Income tax or Rate as per DTAA whichever is more beneficial for the asessee will be applicable.
[Please note that for availing the beneficial tax rate, NO-PE and TRC should be available with the NRI]
Check if payment or aggregate of payments in FY< 5,00,000
Yes : File Part A of Form 15 CA.
3. If payment or aggregate of payments in FY< 5,00,00
File Part B of Form 15CA if :
(I) a certificate from the Assessing Officer is obtained under section 197; or
(II) an order from the Assessing Officer is obtained under sub-section (2) or sub-section (3) of section 195
File Part C of Form 15CA along with CA Certificate in Form 15CB.
You May Also Like : Filing Form 15CA and 15CB : Process and Requirements
I have made a brief Chart that will help you in understanding the procedure:
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