CA Manish S. Savalkar
1. Why Form 15CA?
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. 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.
2. Whether Form 15CA has to be submitted in all cases since the Bankers demand it invariably?
In this regards the attention is invited to the Headings of the Form which provides as under:
“Information to be furnished for payments, chargeable to tax, to a non-resident not being a company, or to a foreign company”
“(To be filled up if the remittance is chargeable to tax and the aggregate of such remittances made during the financial year does not exceed five lakhs rupees)”
(Underlined for emphasis)
As can be seen from above the Form clearly states that it needs to be filled only if the remittance is chargeable to tax in India. Therefore on the first blush it appears crystal clear that Form 15CA is not required to be filled if the remittance/ payment to non-resident are not chargeable to tax. However, No reporting in Form 15CA and 15CB is to be made in case of the following nature of foreign remittances has been provided in Rule 37BB.
SPECIFIED LIST
| Sl. No. | Purpose code as per RBI | Nature of Payment (3) |
| 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. |
Therefore no Form 15CA and 15CB are required in the abovementioned 33 nature of foreign remittances.
3. What stand customer can take if Bank demand Form 15CA but service is not taxable?
In such cases, the possible recourse is to submit a declaration in form of a note to Bank stating the nature of remittance and reason as to why it is not chargeable to tax and consequently exempted from the submission of Form 15CA.
4. Why Form 15CB?
The answer is Form 15CB. Chargeability can be ascertained and certified by obtaining the Certificate from a Chartered Accountant in Form no. 15CB. This certificate has been prescribed under Section 195(6) of the Income tax Act and is an alternate channel of obtaining Tax clearance apart from Certificate from Assessing Officer.
Perusal of Form 15CB makes it clear that there is no condition or exemption to obtain such certificate when the remittance is not chargeable to tax. In fact this Form 15CB is the Tax Determination Certificate where the Issuer CA examines the remittance having regard to chargeability provisions under Section 5 and 9 of Income tax Act along with provisions of Double tax Avoidance Agreements with the Recipient’s Residence Country. Therefore in my opinion, it is advisable to obtain 15CB even in cases where 15CA is not mandated. Though there is no penal provision prescribed in the Act if such Certificates in Form 15CB and Declaration in Form 15CA are not obtained, but it is in the interest of Assessee to have a tax determination in Form 15CB from a CA, since Non-resident taxation involves various complex issues and the consequences of Non deduction are severe.
5. 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 aggregate of such payments made during the financial year does not exceed five lakh rupees;
(ii) the information in Part B of Form No.15CA for payments other than the payments referred in clause (i)
6. 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. Documents required
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.
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.
7. What are the impacts of new Rule?
a. Department added 28 types of payments for which no information is required to be furnished at all.
b. Form 15CB is not required where Part A of Form 15CA is to be filled in, i.e., in case of small payments.
c. In case of other payments, it appears that either an order or a certificate of the Assessing Officer u/s. 197/195(2)/195(3) must be obtained, or a certificate of the Chartered Accountant should be obtained.
d. Sub-rule (2) of the revised Rule 37BB mandates that Form 15CA shall be furnished to the authorised dealer prior to remitting the payment.
e. The revised Rule 37BB casts a duty on the authorised dealer to furnish Form 15CA submitted by the remitter to an income-tax authority for the purposes of any proceedings under the Income-tax Act.
f. The revised Forms state that in the absence of the PAN of the recipient, provisions of section 206AA shall apply.
g. The revised Form 15CB requires detailed enumeration of the taxability of the amount under the Income-tax Act, without giving any effect to the DTAA. Where DTAA provisions are sought to be applied, the details of the Tax Residency Certificate, applicable DTAA and its relevant article, as also tax liability under the DTAA are to be furnished. The nature of remittance is divided as — for royalties, FTS, interest, dividend; on account of business income; on account of short-term and long-term capital gains; and any other remittance.
(The author can be reached at manish.savalkar@gmail.com or on +91 9833862440 for any queries)
Republished with Amendments by Team Taxguru.
Author Bio
SIR,
WE ARE IMPORTING RAW MATERIAL AND SOME MACHINERY AND PARTS, WETHER WE REQUIRE TO FILE 15CA/15CB AS PER FINANCE ACT AMENDMENT 01-07-15 FOR REMMITANCE FOR RAW MATERIAL, MACHINERY & PARTS.
REGARDS.
R.D.MEHTA
SIR,
WE ARE IMPORTING RAW MATERIAL AND SOME MACHINERY AND PARTS, WETHER WE REQUIRE TO FILE 15CA/15CB required compulsory as Finance Act amended wef 1st June 2015 – FOR REMMITANCE RAW MATERIAL, MACHINERY & PARTS.
REGARDS.
R.D.MEHTA
To attend conference, I have to submbmit fees.
I want to attend conference in uSA Atlanta. I have to submit fee.
I have about 18 Lakhs in NRO account (From my sale of property) and would like to transfer the funds to Canada to repay some of my debts, so please advise process for the same.
we have to pay to an international company for import of goods and we registered firm having PAN & TIN. whether form 15CA & 15 CB is required.
I have an NRO account with my inheritance from my mother. The bank says I need 15CA and 15CB to get it in US dollars. Is it necessary? There are no taxes due to the governement because money came from shares that were there for a long time. Pradeep
my son is studying in usa i have to transffered fees thro wire transection from my saving acc can i have to submitted 15ca/15cb to bank.
Hi,
Nice article. Thanks for sharing.
I have one query,,
If, we are transferring funds in Indian Rupees to the foreign entity. situated in India.. For that also, FORM 15CA & 15CB required?
There is no foreign currency remittance.
Thanks,
Sanjay Andani
Sir,
I wish to send 20 lacs from my sb a/c to my son in UK. whether to submit 15CA @ 15CB
We are a 100% EOU in Tamil Nadu. Would like to know if purchase of raw material made locally, payment can be effected in foreign currency, since we hold an EEFC account ?
Sir,
IS IT NECESSARY TO GIVE 15CB FOR REMITTANCE AGAINST IMPORT OF GOODS
after new notification
payment to Shipping Co. as export fright in Doller ( RBI Code S0204 ) required 15CA and 15 CB or not.
sir, my father is an accountant,but not chartered accountant still I need form 15CA and 15CBfrom CA or I can get it from accountant only.
I see so many questions and queries listed in the comments – my question is – are these replied ? if yes where can I read the replies ?
Sir,
I have Query Regarding whether TDS is Deducted on Payment made to Foriegn Company for SNI Registration,and Treatment of it in 15CA & 15 CB.
Awaiting for your Reply.
Sir,
IS IT NECESSARY TO GIVE 15CA AND 15CB FOR REMITTANCE AGAINST IMPORT OF GOODS
DEAR SIR,
OUR BANKER INSISTING 15 CA AND 15 CB FORMS FOR IMPORT REMITTANCE
PL CONFIRM WHETHER IT IS NECESSARY TO GIVE TO BANK ?
Hello sir,
I had recently enquired with State Bank of Mysore, Bangalore Branch, about sending money from my savings to a university in US by wire transfer and they said that I need to submit completed forms 15CA/CB even though I told them that it is the course tuition fees. Please advise on what I should do next.
Thank you
Dear sir
WE are purchase the machinery in pvt. ltd. company and bank instead for Form no. 15 CA and 15 CB
Kindly confirm this is mandatory
can anyone suggest about the relevant section of the Act under which the remittance is covered
Sir,
Can you suggest to me a book where details of % of tax as applicable under DTAA and without DTAA could be referred.
Good article.
SIR, I HAVE A QUERY MY DAUGHTER IS NRI AND I WANT TO REMIT MORE THAN RS. 50000/- TO HER FOR HER PERSONAL USE , WHETHER 15 CA IS REQUIRED AND TAX IS CHARGEABLE
Dear sir,
We have started a new partnership firm to import timber from S Africa.
PAN no, TAN no, TIN, CST reg, IE Code have been obtained in firms name.
Bank Current account has been opened in firm name.
Bank has insisted us to obtain form 15 CA & CB before remitting funds to abroad from a chartered accountant.
Sir, Are these forms necessary for our business.
Should these forms be obtained only by engaging an chartered accountant.
I HAVE ALREADY MADE PAYMENTS TO NRI ON PURCHASE OF PROPERTY AND BANKER ALSO HAS CLEARED THE CHEQUE WITHOUT FORM 15CA.I REMMITTED THE TDS U/S 195. AS I HAVE NOT SUBMITTED FORM 15CA PRIOR TO PAYMENT,HOW TO FILE 27Q WITHOUT QUOTING ACK NUMBER OF 15CA.KINDLY HELP
1 My son is NRI and his flat rental is deposited in his NRO account in the bank.Now the organisation to which this flat has been rented out is demanding form 15CB for paying the rent.We are filing has tax returns in India and 10% TDS is being deducted.Kindly advice if I should give Form 15CB.
2 My son has got NRO and NRE accounts in the same bank.Do I need to give form 15CA and 15CB for shifting the fund from NRO to NRE account.NRO account gets income through Bank F D and Rentals.
Kindly suggest
Thanks R N Mehrotra
SIR WHEHTHER FORM 15 CA AND 15 CB IS ALSO TO BE SUBMIT FOR IMPORT OF GOODS IN NORMAL CAS OF BUSINESS BY A COMPANY ?
IS THERE ANY CHANGE IN THE ACT W.E.F. 01.06.2015 IN THIS REGARD.
PLS REPLY AS SOON AS POSSIBLE.
I HAVE A QUERY,I WOULD TRANSFERRING MY US INDIVIDUAL ACCOUNT TO MY US CURRENT ACCOUNT WHICH I ONLY DIRECTOR OF THAT COMPANY SO, COULD I LIABLE TO FILLED 15CA & 15CB OR ANY OTHER FORM.IF YES PLEASE TELL
I have read your article about 15CA & 15CB, I would to know more about this. Thanku sir……
After deducting tds payment made to seller on sale of property and deposit tds, now when seller wants to send that money to outside india, now form 15 ca to be filed by seller as he now becomes the remitter and remittee i.e from nro a/c to bank outside india please guide
I have read your article about 15CA & 15CB, I would to know more about this. Whether we need TRC while we are make payment against Import of Goods. And no one is taking any benefit of DTAA.
Sir,
Tax residency certificate is mandatory to sign form 15cb
or Deceleration given by the foreign company stating that no PE in India is it enough.
SIR WHEHTHER FORM 15 CA AND 15 CB IS ALSO TO BE SUBMIT FOR IMPORT OF GOODS IN NORMAL CAS OF BUSINESS BY A COMPANY ?
IS THERE ANY CHANGE IN THE ACT W.E.F. 01.06.2015 IN THIS REGARD.
PLS REPLY AS SOON AS POSSIBLE.
REGARDS
we have to pay to an international company for import of goods and we registered firm having PAN & TIN. whether form 15CA & 15 CB is required. also pay commission on export sale whether form 15CA & 15 CB is required
Sir, I would like to know do we need to submit Form 15CA/ 15CB if we make advance payment against goods to be imported for sales in India or we send payment against goods imported for sale.
Dear Sir
I am try fill Form 15CA & 15CB but there is one query i have.
in part B- SEC-B
IT act
they ask about Taxable amount?
which amount i supposed to put in that box
i have to return a certain amount i have loaned from my brother in usa. can i send him the same from my nro account . do i have to attach the forms 15ca and 15cb . do i need a chartered account to do the same
Our Bankers are asking FORM 15CA and FORM 15CB for Payments made against Imported Goods. They say it is required compulsory as Finance Act amended wef 1st June 2015. Please confirm
Director of the Company remitting foreign payment on behalf of the Company from its personal credit card without issuing 15CB and 15CA, is this violation of the Income Tax Act, 1961.
WHAT IF THE AMOUNT REMITTED IS NON TAXABLE
We have filed 15CA in a currency and afterwards filed another 15CA in place of ealier filed 15CA with different currency due to some rmmitance issue.
Now site is showing both the 15CA filed earlier and rectified one.
Is there a way to cancel the previously filed 15CA? or is it ok if both the forms are reflecting on site?
If payment from nro a/c.
I have submitted form 15ca and 15cb to my bank.
My bank what will be do with these forms?
Bank will submit to Reserve bank of India or to Income Tax Department
bank is insisting for form 15ca&15cb for my daughter education remittence.is it required
Payment of invoices for which goods is subject to TDS.
If payments for import invoices are not subject to TDS what is the benefit of 15 CB?
Mahesh
Sir, I have query, whether the payment for registration fees for a pharma product out of India will require Form 15CA/ 15CB to be issued?
Your early reply will highly appreciated.
CA Rashmikant Acharya 9925032710
Sir,
if the payments are made to any foreign Embassy as a visa/ ministry of foreign affairs fees, by a man power consultancy (prop/ Individual)situated in India. it is taxable, i.e. TDS required or not, and further form 15CA & 15Cb is required to submit in the bank or not
rgds
R K V N Nag-adv.
What about the fund transfer from NRI account to NRE account as per rule 37BB of IT Act, 1961? whether it requires 15CB and 15CA.
Sir, i have a query. Whether a payment to Switzerland based company by an Indian Company in respect of Membership Subscription fees would attract taxation in India ?
NICE ARTICE THANKS FOR SHARING