Nikita Bhatia

Nikita BhatiaAbout Form 15 CA and Form 15 CB:

The Income Tax Law of our country requires authentication of foreign remittances (payments) made to a Non Resident or Foreign Company, for any amount which is taxable as per the existing laws. For this purpose, certain rules and guidelines have been framed by the Income Tax Act for making foreign remittances.

A person making a remittance (a payment) to a Non Resident or a Foreign Company has to submit Form 15CA. This form is submitted online. In some cases, a certificate from a Chartered Accountant in Form 15CB is required before uploading Form 15CA online.

Form 15CB is the Tax Determination Certificate where a Chartered Accountant determines the taxability of the remittance as per Income tax Act along with the provisions of Double Tax Avoidance Agreement with the Recipient’s Residence Country. If the remittance is taxable, then the same shall be remitted only after deduction of withholding tax (ie, TDS).

The information provided in Form 15CB mainly includes the details of the remitter, details of the remittee, nature of remittance (whether salary, commission, royalty etc) as per agreement between the two parties, Bank details of the remitter and Tax Residency Certificate from the remitter if DTAA (Double Taxation Avoidance Agreement) is applicable.

Banks require these certificates before they make any remittance on your behalf outside India.

Filing Form 15 CA and Form 15 CB

The person making the payment, after obtaining the Certificate in Form 15CB from a Chartered Accountant shall furnish information in Form No. 15CA. Form 15CA is then required to be uploaded by the remitter electronically at the site of the Income-tax Department.

A signed printout of both Form 15CA and 15CB shall be submitted to the authorized dealer/banks, prior to remitting the payment. Authorized Dealers/ Banks are now becoming more vigilant in ensuring that such Forms are received by them before remittance is affected since 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.

It should be noted that even in cases, where Form 15CB is not required to be filed, Form 15CA has to be mandatorily furnished by the remitter before making the foreign remittance.

Cases where Form 15CB is not required:

In the following cases, Form 15CB is not required. However, Form 15CA is to be uploaded mandatorily.

  • When remittance does not exceed Rs 50,000 (single transaction) and Rs.2,50,000 (aggregate in a financial year).
  • When an application is made to the Assessing Officer by the person receiving the income to deduct tax at a lower rate or deduct no tax at all and a Certificate is obtained in this respect.
  • When the person responsible for making the payment considers that the whole of the remittance is not taxable and makes an application to the Assessing Officer to charge tax only on the taxable portion and Order is obtained from the Officer in this respect.

Cases in which both Form 15CA and 15CB are not required:

There is a List of 28 items where Form 15CA and Form 15CB are not required as per the Income Tax Rules:

Serial No. Nature of Payment
 1 Indian investment abroad -in equity capital (shares)
 2 Indian investment abroad -in debt securities
3 Indian investment abroad -in branches and wholly owned subsidiaries
 4 Indian investment abroad -in subsidiaries and associates
 5 Indian investment abroad -in real estate
 6 Loans extended to Non-Residents
 7 Payment- for operating expenses of Indian shipping companies operating abroad
 8 Operating expenses of Indian Airlines companies operating abroad
 9 Booking of passages abroad -Airlines companies
 10 Remittance towards business travel
 11 Travel under basic travel quota (BTQ)
 12 Travel for pilgrimage
 13 Travel for medical treatment
 14 Travel for education (including fees, hostel expenses etc)
 15 Postal services
 16 Construction of projects abroad by Indian companies including import of goods at project site
 17 Freight insurance – relating to import and export of goods
 18 Payments for maintenance of offices abroad
 19 Maintenance of Indian embassies abroad
 20 Remittances by foreign embassies in India
 21 Remittance by non-residents towards family maintenance and-savings
 22 Remittance towards personal gifts and donations
 23 Remittance towards donations to religious and charitable institutions abroad
 24 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
 25 Contributions or donations by the Government to international institutions
 26 Remittance towards payment or refund of taxes
 27 Refunds or rebates or reduction in invoice value on account of exports
 28 Payments by residents for international bidding

In all other cases, if there is a remittance outside India, the person who is making the remittance will take a CA’s certificate in Form 15CB and after receiving the certificate submit Form 15CA to the government online.                                                                     

The author is the founder of VenturEasy.com, an online portal for company formation, business registration, compliance and accounting services. She can be reached at hello@ventureasy.com

More Under Income Tax

Posted Under

Category : Income Tax (26782)
Type : Articles (16281) Featured (4127)
Tags : DTAA (308) Form 15CA (34) Form 15CB (19) TDS (981) Withholding tax (57)

4 responses to “Form 15CA and Form 15CB – Compliance for Foreign Remittances”

  1. sriram says:

    The author has not brought out the point under Rule 37BB. As per Rule 37BB only if Part C of Form 15CA is to be made then only Form 15CB is required. In all other cases viz for Part A , PArt B & Part D there is no need for Form 15CB

  2. jithesh says:

    AS PER NEW RULES. PLEASE ADVICE IF WE HAVE TO OBTAIN FORM 15CB & FORM 15CA FOR PAYMENT AGAINST EXHIBITION OUTSIDE INDIA

  3. Amit Budh says:

    Hello,

    We would like to import some machinery from China to India, such as food kitchen equipment, to be used in our restaurant. Items like refrigerator, freezer, coffee machines, blenders etc.
    Do we need to submit Form 15CA and Form 15CB?

    Thanks
    Amit Budh

  4. Soy says:

    Hi Nikita,
    We are a SEZ Company. Do we need to file 15CA-15CB for our remittance as we are not coming under service tax or any other taxes. pls clarify

    Soy George
    9810878029
    soythodans@gmail.com

  5. VIKAS says:

    SIR,
    I AM AN IMPORTER, BASICALLY I IMPORT STEEL FROM CHINA
    FROM A COMPANY WHICH HAS NO BASE IN INDIA. TH BANK INSISTS
    THAT WE SUBMIT FORM 15CA AND 15CB.THERE IS NOT TDS LIABILITY
    AS THE CHINESE COMPANY HAS NO PERMANENT BASE IN INDIA. I HAVE
    OBTAINED FORM 15CB FROM MY CA BUT I HAVE MANUALLY FILLED FORM 15CA
    AND SUBMITTED TO THE BANK INSTEAD OF FILING IT ONLINE AND GETTING THE
    ACKNOWLEDMENT ON INCOME TAX WEBSITE. IS IT OK TO FILE THE 15CA MANUALLY
    OR HOW SHOULD I RECTIFY THE MISTAKE.

    THANKS
    VIKAS AGARWAL
    09347513611.

  6. gowrish says:

    Dear sir, we are doing a remittance from trust savings account where the funds came from abroad for education fees and due to delay the admissions got cancelled and the trust savings account wants to refund that amount back to the learningn center in abroad. Kindly guide us in this case whether 15ca/cb is required in this transaction sir?

  7. ANJANEYULU T says:

    Dear Sir,
    we are participate an exhibition out side india and made the payment nearly euros 20000/-(aprox) for a company, pleases tell us form 15ca and 15cb required if yes then in which section payment will covered and is liability of tds will attract impact of TDS rate.

    Cell no.9052821975

  8. Anil Sharma says:

    A person making a remittance (a payment) to a Non Resident or a Foreign Company has to submit Form 15CA.

    We are importing raw material from SEZ company to DTA and required to make payment in foreign currency. Bank insists that 15CA and 15CB are required to make such payment. Kindly clarify.

    thanks

    Anil Sharma

  9. CA Hitesh says:

    when a single remittance is for principal and interest, should we obtain one or two 15cb? I.e one for principal amount and other for interest.
    2) In case only 15cb is reqd then in 15ca, in nature of payment- should we write interest and principal or only interest portion?

  10. Sunil says:

    is form 15cb is required for all government import equipments required for research work.

  11. Anuradha Raskar says:

    Sir,

    Any exemption is available for Government organisation for foreign remittance to suppliers

  12. Abhay says:

    Hello Ajay,

    i have same query regarding 15CA & 15CB if you got any solutions do share with us.

    Thanks

  13. Chidambaram Subramanian says:

    Dear Nikita,

    We are an SEZ Company and we regulary import materials with Bill of entry duly attested by the SEZ officer designated in our premises.

    Previously, we used to make remittance along with the copy of the invoice, Airway bill and Exchange control copy of the bill of entry.

    Now, do we need to follow 15CB/15CA route for making remittance for such imports.

    Please clarify.

    Regards
    Chidambaram

  14. Sachin says:

    Hello Nikita,
    Can you please let me know, if any TDS is required to be deducted on the payment of raw material import.

    Thanking You

  15. pawan jain says:

    dear, i also have an query i regularly remit usd against import of goods to foreign company so pleases tell is form 15ca and 15cb required if yes then in which section payment will covered and is liability of tds will attract.

    regard
    pawan jain

  16. Heeten says:

    HI NIKITA

    TAXABILITY IN CASE OF THEATRICAL ROYALTY & TV/VIDEO ROYALTY AND WHAT IF NO ALLOCATION GIVEN.

  17. SAQIB says:

    Dear Sir,
    What about the payment made to a Non resident for depositing rent paid for using his shop/Place for the exhibitions in a foreign country. It is quite evident the payment made to the Non Resident/Foreigner does not accrue or arise in india. Do we still need to furnish Form 15 CA and 5 CB for the same.

  18. S. V. Modi says:

    Hello Nikita.

    Payment abroad towards import of goods/services which are not any income liable to direct tax in India albeit import purchases of goods/service which are liable to indirect tax in India (customs duties/service tax if reverse charge mechanism applicable); yet how is it that when such remittances can never fall under the category of income, 15CA AND 15CB are to be furnished for each an every remittance? What is the rationale when such payments are never liable to direct tax and not even within the scope of DTAA and withholding tax?

  19. ANIL MANIAR says:

    Dear Nikita,

    Please check ammendment
    Provisions of Sec. 195(6) of the income tax act got amended by the Finance Act 2015 and it comes into force with effect from 1-6-2015. As per the amended provision, the person responsible for paying any sum, whether chargeable to tax or not, to a non-resident shall be required to furnish the information of the prescribed sum in such form and manner as may be prescribed. When the original provision was inserted, it mandated the certification and reporting only when the person, who was required to deduct tax from the payment made to a non-resident, not being a company, or to a foreign company.

    ANIL MANIAR

  20. kumar says:

    Hi Nikita,

    Plz advice me on the following:

    As you had indicated above that other than 28 items listed above we have to file Form 15CA & wherever applicable Form 15CB. Plz clarify in case if we are making remittance for import of inputs, capital goods do we have to file these forms which is not a part of DTAA. Plz provide the details if there is any with the circular/notification.

    Tks

  21. Bhupal Singh says:

    Dear Sir,
    I wish to send about AUD 10,000/- through Bank ( PSU Bank ) to my son as Gift on his B’day. He is living in Australia. As per ser 22 above list ( list of cases when forms 15 CA 15 CB are not required to be submitted ), it is not required to be submitted to Bank. My qyeries are—

    a. Is it ok by I.Tax Deptt ??
    b. Is it to be shown in the I.T. Return ??? If so. which form has to be
    used ??? ITR-2A or some other form ??? I am a retd Defence Officer,
    wit income from 1 Propery besides Pension & other sources.

    Bhupal Singh

  22. Vijay Sawhney says:

    Request you to please let us know if a payment is made to an NRI in INR and TDS is deducted u/s 195 @30%, will 15CA/15CB be still required?

    Thanks

  23. Tarunkumar D Trivedi says:

    Is F 15CA and 15CB required for payment of college fees by Indian student to University abroad ? Pl reply with legal reasonings

  24. vijay chowdhery says:

    You can now complete the process of obtaining a certificate from and generate 15cb and submit to bank, this Will cover you from any risk of penalty for non complance=

  25. Ravi says:

    Hi,

    Whether for all import payments also Form 15CA & CB to be submitted?

    Regards
    Ravi

  26. Vinay meena says:

    Hi Nikita

    Is there any way to revised form 15CA

    Thanks

  27. Ajay Maheshwari says:

    Hello Nikita,

    I have a query regarding submission of Form 15CA and 15CB.

    Due to oversight of this amendment, one of my client did not file form 15CA online for a payment made on June 1, 2015. The bank did not require the form at that time and even now the bank has not raised any demand.

    However, for compliance, the client wants to have 15CA on record too. But the incometaxindiaefiling.gov.in does not let us do it due to date constraint.

    Please suggest a way.

    Thanks in advance.

Leave a Reply

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