CA Pratik Anand

CA Pratik AnandNowadays Form 15CA and 15CB are of a lot importance. We professional atleast have to issue one Form 15CB every day and form 15CA is also to be made by the professional on behalf of the client.

Form 15CA is a Declaration of Remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This is starting of an effective Information Processing System which may be utilized by the Income tax Department to independently track the foreign remittances and their nature to determine tax liability. In the modern times, the system for selection of cases into scrutiny have reduced drastically and without scrutiny there was no check to ensure that taxable foreign remittances have been made after deduction of tax or not. Therefore, the remittance channel i.e. Banks have been directed to obtain Form 15CA and 15CB before making any remittance. Authorised Dealers/ Banks are now becoming more vigilant in ensuring that such Forms are received by them before remittance is effected since now as per revised Rule 37BB a duty is casted on them to furnish Form 15CA received from remitter, to an income-tax authority for the purposes of any proceedings under the Income-tax Act and also the revised FEMA Guidelines issued in July’2014 cast duty on the banks to ascertain the Tax Liability in each case of remittance. As per the revised RBI Guidelines, The RBI in this regard will not issue any guidelines with respect to deduction of tax at source on foreign remittances. Therefore the Banks are urging the remitters to provide such Form 15CA and 15CB even in case of Import purchases.  

Here is an attempt to make a comprehensive check list/procedure for effecive furnishing of Form 15CA and 15CB.

REQUIREMENTS FOR MAKING FORM 15CA and 15CB

Step 1: Ascertain whether Form 15CA and CB are actually required to be made.                  

As per Income Tax (Fourteenth Amendment) Rules, 2013, No reporting in Form 15CA and 15CB is to be made in case of the following nature of foreign remittances w.e.f 01.10.2013

SPECIFIED LIST  

Sl.No. Purpose code as per RBI Nature of Payment
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 S0202 Payment- for operating expenses of Indian shipping companies operating abroad.
8 S0208 Operating expenses of Indian Airlines companies operating abroad
9 S0212 Booking of passages abroad -Airlines companies
10 S0301 Remittance towards business travel.
11 S0302 Travel under basic travel quota (BTQ)
12 S0303 Travel for pilgrimage
13 S0304 Travel for medical treatment
14 S0305 Travel for education (including fees, hostel expenses etc.)
15 S0401 Postal services
16 S0501 Construction of projects abroad by Indian companies including import of goods at project site
17 S0602 Freight insurance – relating to import and export of goods
18 S1011 Payments for maintenance of offices abroad
19 S1201 Maintenance of Indian embassies abroad
20 S1 202 Remittances by foreign embassies in India
21 S1301 Remittance by non-residents towards family maintenance and-savings
22 S1302 Remittance towards personal gifts and donations
23 S1303 Remittance towards donations to religious and charitable institutions abroad
24 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
25 S1305 Contributions or donations by the Government to international institutions
26 S1306 Remittance towards payment or refund of taxes.
27 S1501 Refunds or rebates or reduction in invoice value on account of exports
28 S1503 Payments by residents for international bidding”.

Therefore no Form 15CA and 15CB are required in the abovementioned 28 nature of foreign remittances.

Step 2:Once it is ascertained that Form 15CA and 15CB have to be made then one should ascertain the part of Form 15CA to be filled by the assessee, by reading the following extracts of Amended Rule 37BB;                         

Rule 37BB. (1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax 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 does not exceed fifty thousand rupees and the aggregate of such payments made during the financial year does not exceed two lakh fifty thousand rupees;             

(ii) the information in Part B of Form No.15CA for payments other than the payments referred in clause (i)

Step 3:  Information to be required from the client

A Details of Remitter  

1. Name of the Remitter

2. Address of the Remitter

3. PAN of the  Remitter

4. Principal Place of Business of the Remitter

5. E-Mail Address and Phone No. Of Remitter

6. Status of the Remitter (Firm/Company/Other)

B.  Details of Remittee

1. Name and Status of the Remittee

2. Address of the Remittee

3. Country of the Remittee (Country to Which Remittance Is Made)

4. Principal Place of the Business of the Remittee

C.  Details of the Remittance

1. Country to Which Remittance Is Made

2. Currency in Which Remittance Is Made

3. Amount of Remittance in Indian Currency

4. Proposed Date of Remittance

5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)

D Bank Details of the Remitter     

1. Name of Bank of the Remitter

2. Name of Branch of the Bank

3.  BSR Code of the Bank

E.  Others 

1. Father’s Name of the Signing Person

2. Designation Of The Signing Person

F      a. Form 10f Duly Filled By the Authorised Person Of The Remittee.

b. Tax Residency Certificate From The Remittee (Tax Registration Of The Country In Which Remittee Is Registered)

c. Certificate That The Remittee Does Not Have Any Permanent Establishment In India. This Is Mandatory If The Income Is A Business Income And Not Chargeable To Tax As Per DTAA If There Is No P.E In India.

This Is Required If Any Benefit Under DTAA Is Taken, Whether By Way Of Lower Rate Of Deduction Of Tax At Source Or No Deduction Of Tax At Source As Per DTAA.     Hope you find the above information relevant and useful in your daily practise.

(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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Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 52
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

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Tags : CA Pratik Anand (52) Form 15CA (34) Form 15CB (19) TDS (980)

45 responses to “Check List for Making Form 15CA and 15CB by Professionals”

  1. Shubham Jindal says:

    An Indian company is paying to a foregin company for the Rendering of Manpower service, so please advice me whether invoice is mandatory required for making the payment or we can pay on the basis of agreement. In agreement the rate of Labor is fixed & Now we are paying on the basis of Monthly attendance*Monthly Salary/No. of Days….

  2. Ranganathan.B. says:

    in rule above 37bb(1) above,
    read as ” if the amount of payment EXCEED and not as DOES NOT EXCEED

  3. Mansi says:

    Is 15CA and 15CB mandatory for importing Assets from the company which is situated outside India?

    the company who is purchasing the asset is a Private Limited company situated in India

  4. Mansi says:

    Is 15CA CB mandatory for import of asset from comapny ouside India worth $60,000/-?Import is made by Private Limited comapny in India?

  5. saroj kumar jena says:

    i have i have fill the 15CB in java utility and create XML file but dont understand how to submit in ITR site.

  6. Yazeed says:

    what are the procedures to be concerned by the auditor while giving form 15CB to the client?

  7. Brajesh Kumar says:

    Which Section of Income Tax Act 1961 authorises the payment by way of 15 CA/CB.

  8. pooja says:

    Dear sir/madam,

    While filing Form 15CA which country should be selected for TAIWAN as there is no such name in the list of countries.

    Kindly send the reply

    • vidyalakshmi.S says:

      In case of Taiwan, china should be selected in place of “country” and in place of remittance to me made “china”, should be selected but in place of principal place of business”Taiwan” should be selected.

      • bhavin vora says:

        Dear Madam,
        Please reply to bhvnvra@rediffmail.com
        I need to pay a reinsurer who is Germany based entity. Bank details given on invoice is of USA.
        Country to which remittance is made – USA or Germany??
        If it is USA and mistakenly we put Germany in 15CA and the remittance is made. What will be the effect.

  9. Brijraj says:

    I wish to make payment to a company in Philippines for Participation in Exhibition for Businees promotion in a Trade Fair in Philippines towards Stall Booking Fees.
    Do I Have to deduct TDS. The foreign Company does not have any establishment in India and will not accept reduced payment for TDS.

  10. Ram Mohan says:

    After obtaining 15cb from our auditor I am facing trouble with 15ca online to you I fill it and submit it asks for user PIN. after talking to you I have tried bot PAN no /password but without success. why is it so?

  11. gandhi says:

    sir,

    while uploading 15 ca remitte is from taiwan but it is not show in country’s list. then wchich country i have to select.

    please reply me..

  12. ADARSH MALPOTRA says:

    Please clarify the requirement of form 15CA for following transaction :

    A property is owned by Non resident in India. The non resident is situated in USA and has given power of attorney to his father who is retired Govt Servant. A joint NRO account of the owner of the property and power of attorney is opened in India. Now the property is leased to a PSU and the PSU has to make remittance of rental payment in Indian Currency in NRO account of owner in India. Please clarify the section for TDS – Is it 194I or 195 and requirement of submission of form 15CA as the money is being remitted in Indian bank in NRO account

  13. SUNIL says:

    Dear sir,

    please advice me if we have send any import row material payment can we submitting 15ca/15cb form

  14. Nitin Patil says:

    as per new 15 CA/CB income tax Rule, is there 15 CA/CB required for import Payment remittance & Buyers Credit due?

  15. ketan says:

    Do I need to obtain 15cb from CA if I m sending 5000ruppe to my girlfriend abroad through foreign remittance ?

  16. Ramesh says:

    A Vendor from Australia providing technical service (software service ) for indian based company, while making payment to the foreign vendor ,do I need to deduct TDS? if yes how much % and if not do we need to submit form 15cb?, please help me on this,its an urgent work for me. Thanks and Regards, Ramesh S M.

  17. Siba Prasad says:

    One of my client(society exempt under 12 AA) has to pay in FE to an UK university for advisory services related to a public charitable activity (related to health & hygiene)in India.Whether certificate in Form CB is required ? If not under which category (out of 28)

  18. Chirag Patel says:

    i am doing overseas exhibition payment to indonesia. bank demanding 15CA & 15CB for this transaction, is it compulsory to submit in bank.?

  19. JAIMEEN says:

    Suppose I have to make remittance of capital goods purchased in part payment in 90 % and 10 % as a condition mentioned in invoice. So, whether I have to issue 2 separate certificates or single one ???

  20. Pratik Anand says:

    Mr. Srini,

    Transfer to NRE Account is treated as a foreign remittance therefore is subject to 15CA and 15CB. They will have to be given.
    For any assistance on the above please call me at the above number or mail at the above e-mail id given in this article.

  21. Srini says:

    I accidentally transferred 5 lakhs from my NRE Savings to my NRO Savings due to the way the online system for Indusind was set up. I wanted to reverse this transaction as soon as I discovered this mistake. IndusInd bank is asking me to submit 15CA and 15CB. Is this correct? Since the source of these funds is my NRE account what needs to be done? Looking at these forms is daunting.

  22. Binal says:

    Is it ok if we give 15CA & 15CB on quarterly basis,if the bank is ok with that.Instead of submitting the same for all the individual remittance.

  23. omkar says:

    I am not sure whether someone really answers the query..

  24. Anuj says:

    my client would like to import cctv camera to sell in india and he is having import export license as well. can 15AC and 15CB is necessary to provide to the banker for remittance ?

    the amount is between 50,000/- – 1,00,000/-

  25. Santosh says:

    Sir,
    My client has hotel & lodging business and a person who is non resident booking lodge outside India on commission whether such commision liable for tds and for form 15ca and 15cb

  26. kailash goyal says:

    Dear Sir ,

    My client is an society and they are making payement to an austrelian citizen having no pe , who has delivered a lecture to the memberes of society . Wether tds is required or not . As per dtaat the professional fees is exempted . pl. guide us

    Thanks

  27. Ahmad says:

    Hi sir,

    My client runs a project consultancy and online market research company. They have clients and vendors both in USA. For making payments to their vendors for services does we need to deduct tax (if yes then how much)? Can we submit one time 15CA/15CB? Please advise.

  28. Tapan says:

    I’m shifting to Singapore and need to make a payment for rent for my home there. Is 15 CA, CB required in this case as well ?

  29. BIKRAM JALAN says:

    RESPECTED SIR,

    MY CLIENT RESIDING IN AMERICA SINCE 2000, HIS FAMILY MEANS MOTHER AND BROTHERS ARE IN INDIA, NOW HIS BROTHERS SOLD THEIR FAMILY PROPERTY AND WANTS TO REMIT HIS SHARE OF MONEY IN HIS ACCOUNT IN AMERICA. THEY PAID TAX ON THEIR CAPITAL GAIN INCOME. MY CLIENT ALSO FILED HIS RETURN OF INCOME AND PAID TAX AS HE HAS TO PAID. NOW HE WANTS TO TRANSFER HIS SHARE OF MONEY IN HIS ACCOUNT. HE APPROACH ME FOR THE ISSUANCE OF CERTIFICATE IN FORM 15CB.

  30. DARSHAN CHANDALIYA says:

    sir my NRI CLIENT sold residential house property in INDIA and wants to transfer this amount from NRO account to NRE account. whether still 15 CA and 15 CB is reqired

  31. Anjana Ganguly says:

    sir,
    my client is a travelling agent arranges foreign tour for her customers and remits the charges to her suppliers who make all arrangements in those foreign country.
    My questions are:
    1.whether any deduction of tax is required? If yes, then who will deduct it?
    2.here who is the service provider & who is receiver?

  32. Pratik Anand says:

    In my opinion, payment for stall charges is subject to tax at source. It is a kind of renting of space for exhibition.

  33. Pratik Anand says:

    Nowadays banks are insisting on form 15CA and 15CB even in case of imports.Earlier it was no the case.

  34. Pratik Anand says:

    While issuing Form 15CA and 15CB Reg. Transfer from NRO account, we have to see the source of funds in the NRO Account and see whether the tax has been paid on such income.

  35. R.Palamalai says:

    One of my Assessee partnership firm in chennai is remitting payment to Swedan for meeting the stall expenses in the exhibition centre displaying the samples.

    Will it attarcts TDS. If so There is no PAN for the person to whom Assessee is sending money to meet the cost of the stall

    kindly clarify sir

  36. Sudarshan Rangan says:

    @Deepak Patil : Yes Sir!! 15CA/CB is necessary even if there is no tax liability to the non-resident recipient.

    @Hitesh Shah: At present, Banks should not insist for Form 15CA/CB as the FEMA rules with regards to 15CB requirement as per FEMA Laws are synchronized with Income Tax rules. So kindly educate your banker with regards to non-requirement of Form 15CB,as invariably the AD bankers are not aware about the FEMA Laws and Income Tax Laws. As per IT laws, there is no requirement for 15CB with regards to NRO to NRE transfer .

  37. Rakesh Kumar Singhal says:

    Thanks CA Prateek Anand for such a elaborative on the form 15CA and 15CB

  38. MUKESH SENGANI says:

    Is it required to file Form 15CA/15CB in case of an Indian Businessman imports Timber Logs from foreign country???

  39. Padmaja R says:

    Yes right Sir

    As we have to check whether he had paid Income tax on NRO account interest or not , If not paid then we have to push them to pay before issuing Form 15CA Cb to them

    So Compulsory

  40. Deepak Patil says:

    If payment is made for services received/procured and utilised outside india from a non resident not having PE in India ( For theses payemts assessee is not liable for TDS), whether 15 CA/CB is necessary?

  41. balakrishna says:

    Good one,
    Its giving goog knowledge about 15ca and 15cb

  42. hitesh shah says:

    When a person has NRO account in the Bnak. Now he wants to transfer his fund in NRE Account. Even thoug, Bnak insisit for 15CA/15CB to transfer the fund. Is it right !

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