Deepak Gupta | 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.
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.
| 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 |
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:
| 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. |
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.
Process of filing Form 15CB by Chartered Accountants is as follows:
Note: DSC is Mandatory to file Form 15CB.
| 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) |
| 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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