CA Pratik Anand

CA PRATIK ANANDThe new rules for preparation, filing/ issuing forms 15CA and 15CB are effective from 01st April’2016.

With these new rules coming into effect significant changes have come into effect for furnishing forms 15CA & 15CB.

Some of the key changes for furnishing form 15CA & 15CB that have come into effect from 01st April’2016 are:

1. Both forms 15CA and 15CB are to be filed online

Earlier only form 15CA had to be filed online but now form 15CB i.e certificate by a Chartered Accountant is also to be filed online.

2. Changes in requirement for filing form 15CA & 15CB

A) There are situations where Forms 15CA/CB will not be required at all:

♣ No forms 15CA & 15CB will be required to be furnished by an individual for remittance which does not require RBI approval under Liberalised Remittance Scheme.

♣ The list of payments where there is no requirement for forms 15CA, 15CB has been expanded under Rule 37BB. Following are the new entries in the specified list where no forms 15CA CB are required:

  • Advance Payment against import
  • Payment towards import-Settlement of Invoice
  • Imports by diplomatic missions
  • Intermediary Trade
  • Import below Rs. 5,00,000/- (For use by ECD offices)

Overall List of Payments where no forms 15CA CB are required is as follows :-

Sl. No.Purpose code as per RBINature of payment
(1)(2)(3)
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.

B) There are situations where no forms 15CB will be required:

  • Form 15CB will not be required till the aggregate of remittances during the financial year does not exceed Rs. 5 lakhs.
  • Form 15CB will also not be required where order/certificate of lower/no deduction is taken from the Jurisdictional Assessing Officer us 195(2), 195(3), 197 of the Income Tax Act’1961.
  • Form 15CB is also not required where the remittance is not chargeable to tax.

C) Different parts/sections of Form 15CA required for different types of remittances:

Form 15CA has been divided into four different parts/sections and each part is required in different circumstances:

Part A

Where the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances does not exceed five lakh rupees during the financial year.

Part B

Where the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances does not exceed five lakh rupees during the financial year and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.

Part C

Where remittance is chargeable to tax under the provisions of Income-tax Act, 1961 and the remittance or the aggregate of such remittances exceeds five lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288 has been obtained.

Part D

Where the remittance is not chargeable to tax under the provisions of the Income-tax Act, 1961 {other than payments referred to in rule 37BB(3)} by the person referred to in rule 37BB(2).

D) New Form 15CC prescribed:

Prescribed form No. 15CC for Quarterly statement to be furnished by an authorised dealer in respect of foreign remittances made by it.

E) Penalty of Rs. 1 lakh for each default of non-filing for forms 15CA/CB will be applicable

F)   Procedure for submission of Form 15CA Online w.e.f. 01.04.2016

There is change in the Procedure for filing Form 15CA. New Procedures is given here under for submitting FORM 15 CA from 01.04.2016

Step 1:- Generate Signatures with the  DSC Management Utility provided by the Income Tax Department and USB token / pfx file for each Form for submitting FORM 15CA.

Step 2:- Login with USER ID /Password and date of  Birth/ incorporation on Incometaxindiaefiling.gov.in  and navigate to the menu “e-File” → “Prepare and Submit Online Form (Other than ITR)”  Upload signature file and   → Select “Form 15CA”.

Step 3:- Click on “Form 15CA” tab and Select the appropriate part (“PART-A”, “PART-B”, PART-C” or “PART-D”) based on the remittances as applicable.
Step 4:- Fill in the details and click the “Submit” button. Errors, if any, will be shown on the right panel of the Form.

Step 5:- On successful validation, Click on Submit.

On successful submission it will be sent to the  E Mail Id on record and receipt can be generated from →My Account  → View Form 15CA → Select the Acknowledgement No. and print

G) Now there is an option for withdrawal of Form 15CA before payment. Form 15CA can be withdrawn within 7 days of submission of the online form.

(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)

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