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What is Form 15CA/CB

What is Form 15CA/CB?

A person responsible for making a payment to a non-resident or to a foreign company A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online. In some cases, a Certificate from Chartered Accountant in form 15CB is required after uploading the form 15CA online.

 

When Form 15CA/CB to be used?

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 needs to be deducted, and form 15CA and 15CB are the declarations for the same.

 

The furnishing of information for payment to a non-resident, not being a company, or to a foreign company in Form 15CA has been classified into 4 parts –

PART A: – Where the remittance or the aggregate of such remittance does not exceed 5 lakh rupees during the F.Y. (whether taxable or not).

PART B: – Where an order /certificate u/s 195(2)/ 195(3)/197 of Income Tax Act has been obtained from the A.O. (Whether Nil rate or Lower rate Certificate).

PART C: – Where the remittance or the aggregate of such remittance exceeds 5 lakh rupees during the FY.

PART D: – Where the remittance is not chargeable to tax under domestic law.

 

Upload of Form 15CB is mandatory prior to fill Part C of Form 15CA. To prefill the details in Part C of Form 15CA, the Acknowledgement Number of e- verified form 15CB should be verified.

Which part of the form to be filled

Based on the scenario and the payment amount different information is required to be filled in.

When payment made is below Rs 5 lakh 

Information is required in Part A of Form 15CA

When payment made is above Rs 5 lakh

  • Part B of Form 15CA has to be provided- Certificate in Form 15CB from an accountant.
  • Part C of Form 15C – When the payment made is not chargeable to tax under the IT Act.
  • Part D of Form 15CA.
  • In the following cases, no submission of information is required
    • 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]

The remittance is of the nature specified in the list below:

Rule 37BB
Sl. No. Nature of Payment
1 Indian investment abroad -in equity capital (shares)
2 Indian investment abroad -in debt securities
3 Indian investment abroad-in branches and wholly-owned subsidiaries
4 Indian investment abroad -in subsidiaries and associates
5 Indian investment abroad -in real estate
6 Loans extended to Non-Residents
7 Advance payment against imports
8 Payment towards imports-settlement of invoice
9 Imports by diplomatic missions
10 Intermediary trade
11 Imports below Rs.5,00,000-(For use by ECD offices)
12 Payment- for operating expenses of Indian shipping companies operating abroad.
13 Operating expenses of Indian Airlines companies operating abroad
14 Booking of passages abroad -Airlines companies
15 Remittance towards business travel.
16 Travel under basic travel quota (BTQ)
17 Travel for pilgrimage
18 Travel for medical treatment
19 Travel for education (including fees, hostel expenses, etc.)
20 Postal Services
21 Construction of projects abroad by Indian companies including import of goods at the project site
22 Freight insurance – relating to import and export of goods
23 Payments for maintenance of offices abroad
24 Maintenance of Indian embassies abroad
25 Remittances by foreign embassies in India
26 Remittance by non-residents towards family maintenance and savings
27 Remittance towards personal gifts and donations
28 Remittance towards donations to religious and charitable institutions abroad
29 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30 Contributions or donations by the Government to international institutions
31 Remittance towards payment or refund of taxes.
32 Refunds or rebates or reduction in invoice value on account of exports
33 Payments by residents for international bidding.

 

What if form 15CA/CB is not filled

The absence of filing form 15CA/CB or providing inaccurate information will be attracted to penalty under section 271I of the Income-tax Act, 1961. If an Assessee who is required to file Form 15CA 15CB fails to furnish the same before making remittance to a non-resident, then he has shall be liable to penalty provisions under section 271I of the Income-tax Act, 1961. The amount of penalty which the Assessing officer may ask the Assessee to pay for Non-compliance is Rs.1lakhs.

Revision or cancellation of Form 15CA form 15CB be revised or canceled

Form 15CA can be withdrawn within 7 days from the date of Submission. The link to withdraw the submitted form will be available on the website from the login of the concerned Assessee concerned.

Find Your Form here: Form 15CACB