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

CA Deepak Gupta

Dec 14, 2018

Last update on Dec 14, 2018

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 Parts	Who is Required & When is Required.
Part A of Form No.15 CA	In 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.15CA	In 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.15CA	In 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.15CA	In 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 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.

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:

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

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CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.