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

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Tags : DTAA (316) Form 15CA (34) Form 15CB (19) TDS (1074) Withholding tax (58)

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

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