1. What is the need of 15CA and 15CB?

  • Earlier, the person making a remittance to Non-Resident was required to furnish a certificate in specified format circulated by RBI.
  • Basic purpose was to collect the taxes at a stage when the remittance is made as it may not be possible to collect the tax from the NR at a later stage.
  • Thus to monitor and track the transactions in an efficient manner, it was proposed to introduce e-filling of information in the certificates.
  • Section 195 of Income tax act, 1961 mandates the deduction of Income tax from payments made to Non Resident. The person making the remittance to non – resident needs to furnish an undertaking (in form 15CA) accompanied by a Chartered Accountants Certificate in Form 15CB.

2. What is Form 15CA and 15CB?

  • 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 (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.
  • The furnishing of information for payment to 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 exceed 5 lakh rupees during the FY.

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

  • 15CB is the Tax Determination Certificate where the CA examines the remittance with regard to chargeability provisions under Section 5 and 9 of the Income Tax Act along with the provisions of Double Tax Avoidance Agreements.
  • In form 15CB, A CA certifies details of the payment, TDS rate and TDS deduction as per Section 195 of the Income Tax Act, if any DTAA is applicable, and other details of nature and purpose of the remittance.
  • Upload of Form 15CB is mandatory prior to filling 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.

3. Payment / Remittances don’t require 15CA & 15CB?

  • Individual is not required to furnish the information in Form 15CA and 15CB for remittance which requires no RBI approval.
  • List of payments (28 items) mentioned in Rule 37BB which does not require compliances and reporting through the submission of 15CA and 15CB.

4. Applicability of 15CA and 15CB w.r.t Taxability under IT Act?

  • Taxability –

Taxability

Section 5 of IT Act itself clearly defines the scope of taxable Income but the confusion arises when it comes to Section 9, so following is the summary of Sec 9 just to understand the whole matrix :-

  • Summary of Section 9 –
Sr. No. Nature of Income Taxability
1. Business Income Taxable if direct or indirect business connection in India or property or asset or source in India or transfer of a capital asset situated in India.
2. Capital Gain Taxable if Shares/Property is situated in India or derives its value substantially from assets in India.
3. Salary Income If earned in India.
4. Interest Income If sourced in India (if payer is Resident).
5. Royalties If incurred for business in India irrespective of the residential status of the payer.
6. FTS If incurred for business in India irrespective of the residential status of the payer.
  • Applicability of Form 15CA and 15CB –+

Applicability of Form 15CA and 15CB

5. Documents required for Form 15CA and 15 CB:-

♥ Details of Remitter:-

  • Name of the Remitter
  • Address of the Remitter
  • PAN of the Remitter
  • Principal Place of Business
  • E-mail Address and Phone No. of Remitter
  • Status of the Remitter (Firm/ Company/ Other)

♥ Details of Remittee:-

  • Name and Status of the Remittee
  • Address of the Remittee
  • Principal Place of Business
  • Country of the Remittee

♥ Details of Remittance:-

  • Country to which the Remittance is made
  • Currency
  • Amount of Remittance in Indian Currency
  • Proposed Date of Remittance
  • Nature of Remittance as per Agreement (Invoice Copy)

♥ Bank Details of Remitter:-

  • Name and Bank of Remitter
  • Name of Branch of the Bank
  • BSR Code of the Bank

♥ Documents required for DTAA Benefit:-

  • Tax Residency Certificate (TRC) from the Remittee (Tax Registration of the Country in which remittee is registered).
  • Form 10F duly filled by the Authorized person of the remittee (Self Declaration).
  • No PE (Permanent Establishment) declaration. This is mandatory if the Income is a business Income.

Author Bio

More Under Income Tax

46 Comments

  1. suresh says:

    we paid sea freight to foreign company’s indian agent in USD to indian branch of bank a/c. query is , on whose name form a2 & 15ca should be raised??

  2. SAHEB ALAM says:

    Dear All,

    Indian Co. paying salary of Rs. 13000 (Indian Rupees) to its employee in Nepal working in Nepal. Whether such salary is laible to TDS and do we need to file form 15 CA?

    Please advice. Its urgent

  3. Nam B says:

    Hi,

    I have received over 10 lac from matured insurance policy surrender process. I want to move that to US to my account. what is the process in getting the money moved to my US bank account? Do I need to go through the 15CA and 15CB forms? thank you in advance.

  4. reena choudhary says:

    A TENANT MAKES PAYMENT OF RENT TO NRI MONTHLY AND THE AGGREGATE RENTAL PAYMENT DOES NOT EXCEED RS 5 LAKHS HE ALSO DEDUCTS TDS .NOW WHEN MY CLIENT IS FILING FORM 15 CA PART A. HE IS FACING PROBLEM IN SELECTING THE NATURE OF REMITTANCE AND THE PURPOSE CODE OF RBI…

  5. reena choudhary says:

    A TENANT MAKES RENT TO NRI MONTHLY AND THE AGGREGATE RENTAL PAYMENT DOES NOT EXCEED RS 5 LAKHS.NOW WHEN MY CLIENT IS FILING FORM 15 CA PART A. HE IS FACING PROBLEM IN SELECTING THE NATURE OF REMITTANCE AND THE PURPOSE CODE OF RBI…

  6. reena ashar says:

    Shaufali
    Pl clarify if rent payment is made to nRi in INR to his local account via bank transfer after TDS is deducted @31.2 pc whether 15 CA 15 CB are required

  7. Bishakh Rout says:

    My company is registered in India, and they need to get some quality certification documents (ISO/CE) from another company in Taiwan. My company will be paying for these documents.

    Can you tell me what kind of forms need to be filled before remittance? Also, how much % TDS will be deducted?

  8. Himanshu says:

    NRI has sold property & received funds in NRO A/c.
    Lower Deduction Certificate was obtained from IT Officer in Aug-18.
    Now want to transfer funds from NRO to Foreign.

    Whether in Form 15CA Part B or Part C to be filled ?

  9. Himanshu says:

    A NRI has sold property in India and received sale proceeds in NRO A/c.

    Now want to transfer these funds to abroad.

    1. What will be the RBI purpose code to be used in 15 CB ?

    2. Buyer has deducted. Whether TDS amount to be mentioned in 15 CB as there is no reference of buyer as funds are being transferred from own NRO a/c to foreign

    3. Whether it is to be mentioned as taxable or not. There is net Long term capital loss.

  10. M.CHARLES says:

    Any Tax to be deducted under 15CA when making payment to foreign vendors for Charges for issuing Certification like ISO etc. Reply urgently required by return.

  11. Pintu says:

    Hi ,
    I’m a proprietor in India and using some services in USA company and now i have to pay . Can you please suggest , will it be taxable ?.
    Do I need to pay GST for that?
    Form CA/CB?

    Hope to hear from you soon

    1. Shaifali manglik says:

      Hi pintu,

      As per my understanding, yes it would be taxable but under which clause it will be taxable it depends upon the nature of the service which will be clarified by the contract or the invoice.

      As far as 15 Ca – Cb is concerned, yes it is required because it is required when you are any making any foreign payments.

  12. Dr S N Kumar says:

    I HAVE SOME CAPITAL GAINS AS A PRODUCT OF SALE OF A PIECE OF LAND, THIS WILL FALL INTO LONG TERM CAPITAL GAIN. THIS IS PUT IN NRO A/C. I WANT TO TRANSFER THE AMT. INTO NRE A/C. WHAT AND HOW CAN I GO AHEAD FOR THIS, AS THIS IS ALLOWABLE BY RBI SINCE 7TH MAY 2012. CAN YOU HELP ME PLEASE?

    1. CA Vandana Bhatia says:

      HI, Dr SN Kumar ji, you can surely remit the funds overseas by simply filing form 15CB and 15CA.
      You can visit us at eezmytax.com for any assistance regarding same or just reach us at +91-97-1517-1517

  13. Amit Gupta says:

    HI,
    This is Amit Gupta

    Please advise if A pvt ltd company makes foreign payment against purchase of goods then has it to deduct tds and at what percent.

    Also does it need to furnish form 15CA ad 15CB ?

  14. C. Akazawa says:

    My friend is trying to remit the money saved in Yes Bank to his bank account in Japan. He is a Japanese and he opened his account in Yes bank because he was going to do his Amway Business in India but Amway India was closed for foreigners and now he has no need to keep an account in Yes bank. He was told that he submits the form 15CA 15CB. As he lives in Japana basically, how can he make it ?

    1. Prabhavathy says:

      Your friend can create an account in the Income tax website as non-resident and can proceed with filing of forms.

      CA Prabhavathy

  15. Basil Pereira says:

    I am sending a Donation of Rs 45000/- to a friend in Indonesia. It is not Business Related and does not exceed 5 lakhs . Bank is asking me to fill out Form 15 CA/CB. Is this necessary or not ?

    1. Prabhavathy says:

      If you are a resident individual in India, you can remit the payment under Liberalised remittance Scheme without Form 15CA/CB. You may check with your banker.

      CA Prabhavathy

  16. Basil says:

    Am sending a Donation of Rs 49000/- to a friend in Indonesia. Bank has asked me to fill out 15 CA/CB form. Is this necessary ? Form 15 CA/CB clearly states that the amount should be in an excess of 5 lakhs or more in a Financial Year or if the amount is Business related.

  17. ANTHONY says:

    Can you define the word “payment” used in this rule?
    Is this rule applicable only when there is a remittance of the dues to an account outside India or is it applicable also in the case when a payment is done into a local NRO account of the beneficiary?
    Will appreciate an urgent reply.

    1. CA Prabhavathy says:

      Sir,
      If the amount is transferred to a local account of the non resident, I doubt whether the bank will ask for 15cb. However, normal tds provision will apply and you are required to deduct tax when you make payment. Filing of 15CA and 15CB may not be there.

    2. CA Prabhavathy says:

      Sir,

      The bank will not ask for Form 15CB if the amount is transferred to a local account. However, the normal TDS provisions will apply for the transaction and you are supposed to deduct TDS on the payment. In that case, it is better to obtain opinion for rate of deduction etc from a CA in Form 15CB for correct deduction and payment. Hence it is better to obtain the forms even if not asked by the bank for correct TDS deduction and payment.

      CA Prabhavathy
      caprabha2018@gmail.com

  18. Raj says:

    Hi,
    I am Running a Pvt Ltd co. and nature of business is education consultant but we received fees behalf of university in India and then remit to Kazak please let me know whats the compliance and i need to submit 15CB or not ?

  19. Umang Jain says:

    Individual is not required to furnish the information in Form 15CA and 15CB for remittance which requires no RBI approval.

    If you would have mentioned about those remittance which do not require RBI approval then the blog might have be more clear for the readers.

    Anyway very beautifully explained.

  20. Pramod Chandane says:

    Hi
    I am a UK resident. I made an investment in property back in 2005. Which I sold in 2010 then the same funds were invested in Mutual funds in India. The TDS was deducted when I withdraw funds.
    Now I want to transfer funds back to the UK within the guideline of RBI. The bank is asking me to submit form CA/CB?

  21. J S Sondhi says:

    The list of 33 Items of RBI does not seem to cover the Technical Fee/ Subscription to Professional Bodies in USA, for say Continuation of Professional Licence / membership. The remittance for Professional Fee is certainly not Taxable. Please clarify since the bank is asking for form 15CA, and 15CB, which I think is a futile exercise.
    J S S

  22. RAJ KUMAR AGARWAL says:

    we have received a payment from a company in Nepal for a tour, but due to some problem the order got cancelled .
    Now we want to remit back to the company who sent us the money
    please advise what to do

  23. If a residential property sale proceeds is paid by a “resident” (buyer) to a NRI (non-resident, seller), and full TDS is deducted by the buyer prior to the payment, and a TDS chalan is also issued stating details of both buyer and the non-resident seller, and then the seller deposits such proceeds to his NRO Ruppee account in India (no outward remittance is made), do we still need to file Form 15 CA and Form 15 CB? Please clarify. Thanks.

  24. Rhytham says:

    Hi,
    Can you please let me know which part of form 15CA is to be filed when remittance is not taxable as we are taking dtaa agreement benefit

    1. Shaifali Manglik says:

      If remittance is taxable as per Income Tax Act then 15CB is required along with Part-C of 15CA . It does not matter if the remittance is not taxable because of DTAA benefit.

Leave a Comment

Your email address will not be published. Required fields are marked *