Furnishing of Information in Respect of Payments made to the Non-Resident
Section 195 of the Income-tax Act empowers the Central Board of Direct Taxes to capture information in respect of payments made to non-residents, whether chargeable to tax or not. Rule 37 BB of the Income-tax Rules has been amended vide Notification No. G.S.R. 978(E) dated 16th December, 2015 to strike a balance between reducing the burden of compliance and collection of information under section 195 of the Act.
The significant changes under the amended Rules are:
♠ No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not requiring RBI approval under its Liberalised Remmittace Scheme (LRS)
♠ Further the list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports. Following are the five new exempt payment types :-
1. Advance payment against imports
2. Payment towards imports-settlement of invoice
3. Imports by diplomatic missions
4. Intermediary trade
5. Imports below Rs. 5,00,000-(For use by ECD offices)
♠ A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh.
♠ Prescribed form No. 15CC for Quarterly statement to be furnished by an authorised dealer in respect of foreign remittances made by him.
The amended Rules will become applicable from 01.04.2016.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION No. 93/2015
New Delhi, the 16th December, 2015
INCOME-TAX
G.S.R. 978(E).- In exercise of the powers conferred by sub-section (6) of section 195 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (21st Amendment) Rules, 2015.
(2) They shall come into force on the 1st day of April, 2016.
2. In the Income-tax Rules, 1962 (hereafter referred to as the said rules), for rule 37BB, the following rule shall be substituted, namely:-
“37BB. Furnishing of information for payment to a non-resident, not being a company, or to a foreign company.- (1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, shall furnish the following, namely:-
(i) the information in Part A of Form No.15CA, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year does not exceed five lakh rupees; Read- Corrigendum to Income Tax Notification No. 93/2015
(ii) for payments other than the payments referred in clause (i), the information,-
(a) in Part B of Form No.15CA after obtaining,-
(I) a certificate from the Assessing Officer under section 197; or
(II) an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195;
(b) in Part C of Form No.15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288.
(2) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No.15CA.
(3) Notwithstanding anything contained in sub-rule (2), no information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if,-
(i) 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; or
(ii) the remittance is of the nature specified in column (3) of the specified list below:
SPECIFIED LIST
|
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 ₹ 5,00,000-(For use by ECD offices) |
|
12 |
S0202 |
Payment for operating expenses of Indian shipping companies operating abroad. |
|
13 |
S0208 |
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. |
(4) The information in Form No. 15CA shall be furnished,-
(i) electronically under digital signature in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment; or
(ii) electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.
(5) An income-tax authority may require the authorised dealer to furnish the signed printout of Form No.15CA referred to in clause (ii) of sub-rule (4) for the purposes of any proceedings under the Act.
(6) The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) under sub-rule (8).
(7) The authorised dealer shall furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8).
(8) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of Form 15CA, Form 15CB and Form 15CC and shall be responsible for the day-to-day administration in relation to the furnishing and verification of information, certificate and quarterly statement in accordance with the provisions of sub-rules (4), (6) and (7).
Explanation.- For the purposes of this rule ‘authorised dealer’ means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).”.
3. In the said rules, in Appendix-II, for Form No.15CA and Form No. 15CB, the following Forms shall be substituted, namely:-
[F.No.133/41/2015-TPL]
(PITAMBAR DAS)
DIRECTOR (TAX POLICY AND LEGISLATION)
Note.– The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended vide notification number S.O.3357 (E), dated the 11th December,2015 .
Kindly confirm for central government office coming under ministry of commerce, 15cA and 15CB is applicable for outward remittance for the purpose of trade fair expense and advertisement expense
am NRI and having NRO and NRE Saving bank accountsI. I was having PPF account opened when I was resident in India. Now I have closed this PPF account and accumulated amount is credited to my NRO Accounts. Now I want to transfer my fund received in NRO from the closure of PPF account to my NRE account in the same bank. As per CBDT notification, NO 93/2015 dated 16th December 2015 effective from 01.04.2016 and CBDT PRESS RELEASE Dated 17th December 2015 FORM 15CA and or 15CB are s not required. However, the bank asking for FORM 15CA and 15CB.
What is the correct position? How should I proceed to transfer the balance from my NRO to NRE account?
My client is an nri and having proprty inindia and through poweragent sells the proerty for one crore and the power agent wants to remit the money to the owner who is in USA. Should he get form 15 CA,CB
If Limited compnay paid for Imported Raw Material, still need to file 15 CA and 15 CB?
My son has an NRO savings account in an Indian bank I am the mandatee I wish to remit about Rs 10,00,000 from this to his own account abroad in a foreign bank The Indian bank is insisting on submission of 15CA CB They are not willing to accept that the notification 93/2015 is applicable for such a waiver of these Forms Is that correct ? Also Cant I as mandatee remit it to his own account abroad ?
There is a S0190 code as per list specified by RBI i want to know what is meaning of ECD offices in that point
Dear Sir,
I unable to understand the legal language. Please advice me simply.
I am proprietor of a company imports surgical/medical equipments. I have distributorship for some foreign companies from USA, Germany, Spain. I remit the advance payment for import. I used to submit 15ca, 15cb with import documents. My imports also over 500000/- per year. Please advice me should I submit 15ca, 15cb now or not?
sir i have same query, do you have any answer?
where is new form 15ca
The corrigendum as interpreted by you is incorrect. Deletion of the words “does not” is done in the heading of Part B of Form 15CA
Tax guru.. you require slight modification of the information published above.., The corrigendum doesn’t speak about change as mentioned by you.. It is 49th line in page 17 which is actually PART C I believe.. IF the corrigendum is read as suggested by you, the meaning becomes absurd like CA certificate is required only for less than Rs.5 Lakh payment
sir pls advise to change in us dollar from INR .which form i should fill. for rs. 600000/-
is there any update on this ???
1. Is 15CA and 15CB require in following cases (w.e.f. 01-04-2016):
(i) Remittance made by an individual to non-resident for family maintenance up to USD 250,000 p.a.
(ii) Remittance for education fee, hostel fee etc. not in name of university but to individual.
(iii) gift to persons who are not relatives.
There is doubt for the phrase “A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh.”
Doubt 1) Whetehr chargeable payments should exceed Rs.500000/- or total payments to exceed Rs.500000/- Say for example say principal repaymeny of Loan exceeds 500000/- but chargeable interest is less than 500000/- whether 15cb/ca are reqd?
Doubt 2) 15CB/CA need to be issued only after the specified limit exceeds or once its crosses specified limit, forms are to be filed for all payments effedted before it exceeded the limit? for example say
What about the payments which are within limit for some times and it exceeds after some paymenmts are made. Say first 4 remmittance of Rs.125000/- and the fifth payment is 100000/-. Should we file form 15cb/cs for fifth payment onwards or all five payments.
if pvt ltd company paid for import then file 15CA or 15CB more then 5 lacs require or not
we are releasing the payment to non resident against hire the space in exhibition. can u tell me which code cover this payment.
In this case, CBDT deserves kudos for two things:
1. Substantial simplification of 15CA/15CB
2. Three months time given unlike 3 days time given for introduction of 15G/15H.
Congratulations to some sensitive officials in CBDT.
See what happened in case of new 15G/15H. Notification was issued in last week of September 2015 for implementation by about 1 lakh Bank Branches wef 01/10/2015. Again only about a week back, Director Systems has issued a Notification on uploading 15G/15H. So many aspects to be checked by Bank Branches, how they would be able to obtain new 15G/15H electronically. Director System will take another 2 months to notify exception reports. But CBDT is expecting compliance wef 01/10/2015.
So called simplification of 15G/15H is simplification of work at Income Tax dept. Huge cost of compliance added to Banks !
Form will be applicable from 1/4/2016 ,
A) In case of Foreign on which TDS is not deductible fill up Part D of the Form 15 CA.
B) In case tax is deductible and amount is below Rs 5 Lacs Part A OF Form 15 CA.
C) So CA Will issue certificate only in case payment is taxable and amount exceed Rs 5 Lacs.
D) In the end CA will have to give opinion and payer will upload the form 15CA part D.
what is ECD offices??
Ammended Rule37(BB) is effective from 1.4.2016. For payments to non-residents between now and 31.3.2016, is 15CA/CB to be filed for all payments or only for payments chargeable to tax, as per the position before changes brought in Sec. 195 by Finance Act 2015.
IS THIS APPLICABLE FROM 1-4-2016? DOES IT MEAN THAT WE HAVE TO CONTINUE FILING FORM 15CA and 15CB TILL 31-3-2016.
The list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB on amended Purpose code S0101 Advance payment against imports & S0102 Payment towards imports-settlement of invoice has been added. Hence, import of any value Form 15CA & Form 15CB does not need to furnish.
Purpose code S0190 Import below Rs.5 Lac is restricted for Import by ECD offices and for others purpose code S0101 & S0102 shall apply.
Dear Sir
Whether commission payable to overseas agent for export sales is exempted to submit 15CA & 15CB?
If Import is more than Rs.500000/ then 15CA/15CB required? Or all Imports remittances are exempt irrespective of Invoice amount as per exemption Point (2) above under code S0102? pls. advise.
If Limited compnay paid for Imported Raw Material, still need to file 15 CA and 15 CB?