Issues arising from Notification No 67/2013, dt 2-9-2013 amending Rule 37BB of IT Rules, 1962 wrt Foreign Outward Remittances- Form 15CA & Form 15CB
Ministry of Finance has recently amended Income tax Rules vide Notification No 67/2013, dt 2-9-2013 with regard to Foreign Outward Remittances and Form 15CA &15CB. This notification is in supersession of an earlier Notification No 58/2013, dated 5- 8-2013.
Rule 37BB provides for the method/procedure to be followed while furnishing of information in case any payment is made to nonresident which is chargeable to tax. Notification No 67/2013, dt 2-9-2013 provides through an explanation a list of 28 payments where there is no need to file form 15CA/15CB. As per the earlier Notification No 58/2013, dated 5- 8-2013, there were a total of 39 payments in the specified list which were required to furnish information in Part B of the Form No.15CA. Payments which are not there in the new specified list are as below:
(i) Advance payment against imports– This is a routine payment made by the importers. Non exclusion of such payment from specified list is unnecessarily increasing the compliance burden of the assessees. Further, it may lead to harassment at the time of assessment.
(ii) Payment towards imports settlement of invoice – As mentioned above, such payment is also made in a routine manner by the importers.
Similarly, other payments which were earlier in the specified list of Not No 58/2013, dt 5-8-13 but not
included in new specified list of Not No 67/2013, dt 2-9-2013 and thereby increasing the compliance burden of assesses unnecessarily are as follows:
(iii) Imports by diplomatic missions
(iv) Payments for surplus freight or passenger fare by foreign shipping companies operating in India
(v) Freight on imports -Shipping companies
(vi) Freight on exports – Shipping companies
(vii) Booking of passages abroad – Shipping companies
(viii) Freight on imports -Airlines companies
(ix) Payments for life insurance premium
(x) Freight insurance – relating to import and export of goods
(xi) Other general insurance premium
Since “Advance payment against imports” and “Payment towards imports-settlement of invoice” are routine payment made by the importers, they may be included in the specified list.
Source- Pre-budget Memorandum 2014 on direct taxes by ICAI
And if I go with a bank that does not insist on forms, will there be a liability in future ?
Need some urgent clarification regarding this issue as union budget mentions it as effective from 1st June 2015 for form 15ca cb. So why are some banks asking and some are not. Those who are not, are asked my for a declaration stating that they are not responsible in future if any liability comes on it.
So what should we do?
SIR PLEASE LET ME KNOW THAT WHAT IS FORM 15CA 15CB AGAIST PAYMENT OF IMPORTS .
FURTHER TELL ME THESE FORMS ARE APPLICABLE OR NOT.
WAITING FOR REPLY
Could u confirm if 15 can,cb is is not applicable post finance bill 2015.