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 .

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Posted Under

Category : Income Tax (25515)
Type : Featured (4124) Notifications (15398) Notifications/Circulars (30679)
Tags : Form 15CA (32) Form 15CB (17) Income Tax Notifications (9620) TDS (922) Withholding tax (55)

25 responses to “CBDT relaxes conditions for furnishing of Form 15CA & Form 15CB”

  1. Padmanabhan Ganesan says:

    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

  2. ca deepak gupta says:

    If Limited compnay paid for Imported Raw Material, still need to file 15 CA and 15 CB?

  3. Ashwin Panemangalore says:

    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 ?

  4. shubham pahuja says:

    There is a S0190 code as per list specified by RBI i want to know what is meaning of ECD offices in that point

  5. Batan Jagotra says:

    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?

  6. Surbhi says:

    sir i have same query, do you have any answer?

  7. Yuv Raj says:

    where is new form 15ca

  8. Mayur Agarwal says:

    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

  9. K B Muralidharan says:

    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

  10. Sonu says:

    sir pls advise to change in us dollar from INR .which form i should fill. for rs. 600000/-

  11. Mrunal Shah says:

    is there any update on this ???

  12. NAYAN SHAH says:

    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.

  13. ca hitesh says:

    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.

  14. Rajesh says:

    if pvt ltd company paid for import then file 15CA or 15CB more then 5 lacs require or not

  15. Ravi Kant Sharma says:

    we are releasing the payment to non resident against hire the space in exhibition. can u tell me which code cover this payment.

  16. P Aravindhan says:

    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 !

  17. Manish Jaju says:

    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.

  18. Anjan says:

    what is ECD offices??

  19. Gurjit Singh Bhullar says:

    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.

  20. RAJIV says:

    IS THIS APPLICABLE FROM 1-4-2016? DOES IT MEAN THAT WE HAVE TO CONTINUE FILING FORM 15CA and 15CB TILL 31-3-2016.

  21. Hardik says:

    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.

  22. ANIL S PANCHAL says:

    Dear Sir

    Whether commission payable to overseas agent for export sales is exempted to submit 15CA & 15CB?

  23. Pradeep says:

    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.

  24. RAHUL says:

    If Limited compnay paid for Imported Raw Material, still need to file 15 CA and 15 CB?

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