Nikita Bhatia
About 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 15CA and Form 15CB
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 5,00,000 (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 33 items where Form 15CA and Form 15CB are not required as per the Income Tax Rules:
|
Serial 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 | 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 Rs.5,00,000 – (For use by ECD offices) |
| 12 | SO202 | Payment for operating expenses of Indian shipping companies operating abroad |
| 13 | SO208 | 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. |
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
(Republished with Amendments by Team Taxguru)
step by step procedure for obtaining 15CA/CB
Remiiance of US$ 100000 ( in 3or 4 tranches of 20000 or 30000 each) for Education of my Grandson in USA who is a US citizen
—
Whether form 15 CA or 15 CB are required or any other form required
Good Day Nikita,
I need your advice on foreign remittances.
I am the founder and director of Avinash RJ, Airboat Technologies Private Limited
We have friend in abroad and he supports us to get the order and we have to pay him some respectable amount.
But he has no office
How to pay?
Our SBI Bank individuals are asking for an invoice with the name of their company.
Hi, Can anyone suggest a good CA who can help & guide about foreign transaction/payments.
Thanks
9205851955
Query Sponsorship paid to NRI towards stock gift – college – obtain Form 15CA – part D kindly advise whether to include in Tax audit Clause 34a
There is one thing i like to add in this article is that there is no requirement of Form 15CB in one more case i.e in the case where the remittance is not chargeable to tax as per the provisions of the Act and the Part-D of Form 15CA is being filed
Dear Sir/Madam, I have received tax refund from income tax department directly deposited into my NRO bank account. The bank says that I need 15CA and 15 CB to transfer this money into the NRE account. Since the money is a refund directly from the IT department, I cannot understand why a CA needs to certify that the money is not taxable? Thank you for your kind explanation.
My relative is NRI, She earn rental income at India. She file and paid taxes as a residential status NRI. She want to transfer the money to her own Bank Account. But Banker wants form 15CA & CB from CA. But CA told the above form not needed to my aunty.
Kindly suggest me
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
AS PER NEW RULES. PLEASE ADVICE IF WE HAVE TO OBTAIN FORM 15CB & FORM 15CA FOR PAYMENT AGAINST EXHIBITION OUTSIDE INDIA
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
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
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.
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?
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
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
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?
is form 15cb is required for all government import equipments required for research work.
Sir,
Any exemption is available for Government organisation for foreign remittance to suppliers
Hello Ajay,
i have same query regarding 15CA & 15CB if you got any solutions do share with us.
Thanks
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
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
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
HI NIKITA
TAXABILITY IN CASE OF THEATRICAL ROYALTY & TV/VIDEO ROYALTY AND WHAT IF NO ALLOCATION GIVEN.
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.
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?
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
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
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
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
Is F 15CA and 15CB required for payment of college fees by Indian student to University abroad ? Pl reply with legal reasonings
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=
Hi,
Whether for all import payments also Form 15CA & CB to be submitted?
Regards
Ravi
Hi Nikita
Is there any way to revised form 15CA
Thanks
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.