Filing Form 15CA and 15CB : Process and Requirements

Deepak Gupta | Dec 14, 2018 |

Filing Form 15CA and 15CB : Process and Requirements

Filing Form 15CA and 15CB : Process and Requirements
As per Section 195 of the Income Tax Act 1961, every person liable for making a payment to non residents shall deduct TDS from the payments made or credits given to non-residents at the rates in force.

Mechanism of form 15CA

Therefore the mechanism of form 15CA was introduced via rule 37BB of the Income Tax Act, so as to enable the person responsible for making foreign remittance to give information on foreign remittance & deduct TDS at the rates in force.

We can also say that the role of TDS return is played by form 15CA in case of foreign remittance.

Also the Reserve Bank of India has also mandated that except in cases of certain personal remittances which have been specifically exempted, no remittance should be made to a nonresident without furnishing an undertaking in Form 15CA accompanied by a certificate from an Chartered Accountant in Form 15CB if applicable.

Filing Form 15CA and 15CB : Process and Requirements

What is Form 15CA and 15CB

As per Section 195 of Income tax Act, 1961, every person liable for making a payment to non-residents shall deduct TDS from the payments made to non-residents if such sum is chargeable to Income tax then the withholding tax need to be deducted and form 15CA and 15CB are the declaration for the same. A person making the remittance to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online.

Who is Required to file Form 15CA

Form 15CA & 15CB PartsWho is Required & When is Required.
Part A of Form No.15 CAIn case the payment or the aggregate of such payments made during the financial year does not exceed Rs. 5 lakh rupees, such information is to be furnished in Part A of Form No.15CA.
Part B of Form No.15CAIn case the payment exceeds Rs. 5 lakh such information is required to be furnished in Part B of Form No. 15CA after obtaining a certificate from the Assessing Officer under section 197; or an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195.
Part C of Form No.15CAIn case the payment exceeds Rs. 5 lakh such information is required to be furnished in Part C of Form 15CA after obtaining certificate in Form No. 15CB from an accountant as defined in the Explanation to sub-section (2) of section 288.
Part D of Form No.15CAIn case the payment other than the payment referred in sub-rule (3) of Rule 37BB which is not chargeable to tax under the provisions of Income tax Act,1961, such information is required to be furnished in Part D of Form No. 15CA

When Form 15CA is not required to be furnished

In accordance with sub-rule (3) of Rule 37BB, Form 15CA and Form 15CB are not required to be furnished in case of following transactions:

  • Remittance is made by an individual and it does not require prior approval of the 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; or
  • Remittance is of the nature specified as follows:
Sl. No.Purpose code as per RBINature of payment
1S0001Indian investment abroad – in equity capital (shares)
2S0002Indian investment abroad – in debt securities
3S0003Indian investment abroad – in branches and wholly owned subsidiaries
4S0004Indian investment abroad – in subsidiaries and associates
5S0005Indian investment abroad – in real estate
6S0011Loans extended to Non-Residents
7S0101Advance payment against imports
8S0102Payment towards imports – settlement of invoice
9S0103Imports by diplomatic missions
10S0104Intermediary trade
11S0190Imports below Rs.5,00,000 – (For use by ECD offices)
12SO202Payment for operating expenses of Indian shipping companies operating abroad
13SO208Operating expenses of Indian Airlines companies operating abroad
14S0212Booking of passages abroad – Airlines companies
15S0301Remittance towards business travel
16S0302Travel under basic travel quota (BTQ)
17S0303Travel for pilgrimage
18S0304Travel for medical treatment
19S0305Travel for education (including fees, hostel expenses, etc.)
20S0401Postal services
21S0501Construction of projects abroad by Indian companies including import of goods at project site
22S0602Freight insurance – relating to import and export of goods
23S1011Payments for maintenance of offices abroad
24S1201Maintenance of Indian embassies abroad
25S1202Remittances by foreign embassies in India
26S1301Remittance by non-residents towards family maintenance and savings
27S1302Remittance towards personal gifts and donations
28S1303Remittance towards donations to religious and charitable institutions abroad
29S1304Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30S1305Contributions or donations by the Government to international institutions
31S1306Remittance towards payment or refund of taxes
32S1501Refunds or rebates or reduction in invoice value on account of exports
33S1503Payments by residents for international bidding.

What is the procedure of filing Form 15CA

Form 15CA shall be furnished electronically online. Procedure for filing of Form 15CA at e-filing portal is given below-
Step 1 Log on to ” E-filing ‘ portal at https://incometaxindiaefiling.gov.in/ by assessee by using his credentials
Step 2– Go to the ” E-file” menu located at the upper side of the page and click on Income Tax Forms.
Step 3– PAN of the assessee will be pre-filled. Select “Form 15CA” from drop down list in “Form Name” from drop down list.
Step 4– Select relevant part from “Select relevant part from the down “
Step 5– Fill Form 15CA of selected part and click on “submit” button.
Step 6– Fill up the verification part of relevant part of Form 15CA.
Note– It is mandatory to upload Form 15CB prior to filling Part C of Form 15CA. To fill up the details in Part C of Form 15CA, the acknowledgment number of e-Filed Form 15CB will be required.

If Form is submitted successfully, a message “successfully submitted” will appear on screen and a confirmation e-mail will be sent to the registered email account.

What is the procedure of filing Form 15CB

To file Form 15CB, taxpayer is required to Add CA in his account. CA can be added by using the following steps:
  • Firstly Login to e-Filing Portal, click on “My Account” tab and select “My CA” option.
  • Enter the “Membership Number” of the CA, select 15CB from “Form Name” and click on “Submit” button.
  • Once CA has been entered by the taxpayer, afterwards CA can file Form 15CB in behalf of the taxpayer.
  • However, the C.A. must be registered as C.A. on his e-filing portal. Process for Registration as Chartered Accountant is as follows:
    • User can registered as “Chartered Accountant” in the e-filing portal. If not already registered, user is required to click on “Register Yourself” in the homepage.
    • Select “Chartered Accountants” from “Tax Professional” and click on “Continue“.
    • Enter the mandatory details and complete the registration process.

Process of filing Form 15CB by Chartered Accountants is as follows:

  • Go to http://incometaxindiaefiling.gov.in/ and click on “Downloads” tab.
  • Select “Forms (Other than ITR)” and then download either Excel or Java Utility as per your own convenience.
  • Prepare the XML file using the above utility.
  • Login to e-Filing portal account and click on “e-File” tab and select “Upload Form” from the drop down menu.
  • After selecting “Upload Form“, enter PAN/TAN of the assessee, PAN of C.A., select “Form Name” as “15CB“, select “Filing Type” as “Original”. Click on submit once you have done and you will receive a success message and afterwards an email will be sent to your registered email ID.

Note: DSC is Mandatory to file Form 15CB.

Documents required for Form 15CA and 15 CB:

ADETAILS OF REMITTER
1NAME OF THE REMITTER
2ADDRESS OF THE REMITTER
3PAN OF THE REMITTER
4PRINCIPAL PLACE OF BUSINESS OF THE REMITTER
5E-MAIL ADDRESS AND PHONE NO. OF REMITTER
6STATUS OF THE REMITTER(FIRM/COMPANY/OTHER)
BDETAILS OF REMITTEE
1NAME AND STATUS OF THE REMITTEE
2ADDRESS OF THE REMITTEE
3COUNTRY OF THE REMITTEE (COUNTRY TO WHICH REMITTANCE IS MADE)
4PRINCIPAL PLACE OF THE BUSINESS OF THE REMITTEE
CDETAILS OF THE REMITTANCE
1COUNTRY TO WHICH REMITTANCE IS MADE
2CURRENCY IN WHICH REMITTANCE IS MADE
3AMOUNT OF REMITTANCE IN INDIAN CURRENCY
4PROPOSED DATE OF REMITTANCE
5 NATURE OF REMITTANCE AS PER AGREEMENT(INVOICE COPY TO BE ASKED FROM CLIENT)
DBANK DETAILS OF THE REMITTER
1NAME OF BANK OF THE REMITTER
2NAME OF BRANCH OF THE BANK
3BSR CODE OF THE BANK
EOTHERS
1FATHER’S NAME OF THE SIGNING PERSON
2DESIGNATION OF THE SIGNING PERSON

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. In no event shall I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information

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