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 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)

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33 Comments

  1. DIVYA says:

    Query Sponsorship paid to NRI towards stock gift – college – obtain Form 15CA – part D kindly advise whether to include in Tax audit Clause 34a

  2. KUSHAL CHOPRA says:

    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

  3. GAUTAM GANGULY says:

    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.

  4. SANJAY KUMAR says:

    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

  5. 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

  6. 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

  7. 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.

  8. 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?

  9. 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

  10. 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

  11. 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?

  12. 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

  13. 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

  14. 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

  15. 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.

  16. 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?

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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=

  23. 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.

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