CBDT modifies rules related to payments to Non-resident (Form 15CA & 15CB)

Navneet Singal

Recently the CBDT has modified the rules related to filing of Form 15CA & 15CB through Notification No: 93/2015 Dated: 16/12/2015 . These rules has provided clarification regarding the filing of detail where payment is made in respect of any sum which is not chargeable under the provision of Income Tax Act, 1961 (Act). Further, it has also relaxed the provision related to requirement of filing of Form 15CA & 15CB. The amendment in Rules will be applicable w.e.f. April 1, 2016. Gist of the changes made and filing requirement in Form 15CA & Form 15CA can be described as under:

A. Payment in respect of any sum chargeable under the Provisions of the Act

 (i) If the payments made during the FY does not exceed Rs.5,00,000/-

Information in Form no. 15CA – Part A

(ii) If the payments made during the FY exceeds Rs.5,00,000/-

Incase certificate/order from AO u/s 197/194(3)(2) is available – Form no. 15CA – Part B

In any other case – Form no. 15CA – Part C (after obtaining the certificate in Form No. 15CB)

B. Payment in respect of any sum not chargeable under the Provisions of the Act

            Information in Form no. 15CA – Part D

C. No information is required to furnish if any sum which is not chargeable and also :

(i) The remittance is made by an individual and it does not require prior approval of RBI.

(ii) The nature of remittance is as follows:

a. Advance payments against imports

b. Payment towards imports-settlement of invoice

c. Imports by diplomatic missions

d. Intermediary trade

e. Imports below Rs.5,00,000/- (For use by ECD offices)

(These five items have been added to the list of 28 items earlier)

This information will be helpful while making any payment to a non-resident by the company.