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 forpayments, chargeable to tax, to a non-resident not being a company, or to a foreign company”
“(To be filled upif the remittance is chargeable to taxand 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
Bit of Confusion as i have three queries
I have to make foreign remittance to the following against below (excedding 5 lakh) amount . Kindly confirm whether it is Taxable and whether 15CA and 15CB required
1. Being Exhibition Participation fees
2. Import of Samples
3. Consultancy fees (Agent Commission)
Awaiting urgent reply
1. Being Exhibition Participation fees – I presume your firm is participating in foreign country and making payment to the exhibitor agency there. Since no income is arising or accruing in India and Sec.9(1) is also not applicable, no taxability arises. However Form 15CA and 15CB are required.
2. Import of Samples – Not taxable as business income for them. However Form 15CA shall be required if amount exceeds Rs5 lacs.
3. Consultancy fees (Agent Commission) – Agency commission is taxable if service is in relation to business carried out in India. If the service is for business outside India and there is no business connection with India, it is not taxable. However Form 15CA shall be required if amount exceeds Rs5 lacs.
Please let me know to get Indian currency in dollars from our account from bank below five lakhs do we need to fill 15 c form? Thanks.
Dear friend
It is only a case of currency exchange and not remittance. Form 15CA is not required.
Thanks
Thanks for sharing the articles.
I have a querry.
I have term deposits an I receive pension, file tax return in India. I want to remit ten thousand dollars from my NRO ACCOUNT to my account in USA. I submitted form 15CA PART D BUT THE BANKER IS INSISTING 15CA PART C. But my Chartered Accountant is not prepared to give and says PART D is the appropriate form. If so am I to loose all my savings. Please advise which is the appropriate form.Kindly reply
DEAR SIR WE WENT TO PAID AUDIT FEES IN USD DOLLER IN HONG KONG OFFICE ,PLEASE CONFIRM REQUIRED DOCUMENT FOR TT PAYMENT & TDS WILL DEDUCTED OR NOT .
Sir I have a Query. My client a minor wants to transfer money from his indian bank account to his foreign bank account. As he is a minor he could not sign his father can sign with his DSC as representative assessee. But there is no provision in the income tax site to register his father as representative assessee. pl note that minor has no independent income with his ability or skill. please advise.
Hi..I want to buy a amazon affliliate based website
from a broker in the US.For this purpose I need to send money to the broker.Do I need a 15CA and 15CB
Thanks
Hi..I want to buy a amazon affliliate based website
from a broker in the US.For this purpose I need to send money USD to the broker.Do I need a 15CA and 15CB
Thanks.
Our organisation is constructing War Memorial for Indian Troopss participating in World War II.
We have to transfer amount to our contractor in France, in stages but in total it will exceed 1 Cr. Need clarification on :
– This will come under what catagory of remittance and what procedure we have to follow.
– Any tax deduction at our end.
regards
We are an NGO. We do not have FCRA certification. A foreign donor has remitted 1lac to our account. The bank has accepted the payment and credited our account. As this is against the guidelines of RBI, we have instructed the bank in writing to return the money, The bank has been furnished the donor account details, now they are asking for 15CA. Is this required? What are the legal issues?
Sir,
I intend purchasing an old flat worth Rs. 95 Lakhs at Mohali from an NRI. Wish to know from you, if I pay him through a DD or Bankers Cheque payable in India do I need to fill Form 15CA & Form 15CB.
I m non resident and i want to send 15k from my nro account in india to canada for my son for education .My bank ask for 15ca . Please guide me in which Part A,B,C OR D I fill form 15ca
I am a US Citizen with an OCI. Recently I sold some stocks in my NRO account, obtained forms 15 CA and 15 CB from my CPA. However the bank is asking for the bank passbook entry from where the purchase was made several years ago. Is this query by bank common among all banks. As I understand it Form 15CA and CB should be enough to move funds from NRO to NRE account. Any advice is appreciated.
Hi,
I’m a US citizen having OCI. I have a fully paid apartment in India. I would like to avail NRI home loan against this property from ICICI or any other Indian Bank which would be deposited into my NRO account. I would like to move this loan amount from NRO to NRE account and repatriate to US $ for some purpose here in US.
Steps:
——
• Have NRO and NRE account with ICICI Bank
• Avail NRI home loan against the property and the amount would be deposited into NRO Account.
• Request bank to move the money from NRO to NRE account and repatriate to US $ account.
• ICICI Bank will know the source of fund for NRO account (from loan against property) and will have all supporting documentation
Is there a need to go through CA to complete 15CA and 15 CB forms to complete the formalities as there is no sale of property or TDS or any capital gain?
Is there any other formalities that I need to be aware to complete the whole process?
Please let me know. Thanks in advance.
Regards,
Kiran
while filling form 15cb name of ca and address not shown in utility form/
Do we get any Books on Form 15 CA and CB in the market? If yes please specify the Name of the Book.
I have a NRO NON-PIS Demat account with Axis Direct.
For Buying shares, I was charged the normal brokerage+Sevice tax+STT.
However, when I sold the shares, they are telling me that the payout to my NRO Account will happen only on paying Rs2000+Service Tax as per 15CA and 15CB. Please let me know if the amount Rs 2000/- has to be paid everytime I sell and they have to make a payment back to my NRO account.
I am a Seafarer, Indian Nationality, residing in India, and Financially an NRI.
Hello Sir,
I am new to these TAX scenarios and need your advice as different people are saying different things to me.
I am immigrating to Australia and want to take money to Australia.My account has income from my salary only and no other income.
Bank has asked to to get form 15ca/cb and then only they can transfer the amount to my AUS account.
I have also read that traveller cheques are better options, so instead of online transfer which requires form15ca/cb , should i go for the traveller cheques.
amount which needs to be transfer is 35 lac.
please help me in this
Dear Sir,
we have to remit amount to travelling agent in itlay for travelling exp and hotel booking exp.
so 15 ca/cb is required or not ?? or tds to be deducted or not ??
Hi, I’m trying for Immigration for AUS and my consultant has a appointed a lawyer in AUS to take care of my application. Now, I need to transfer 500 AUD for my skill assessment to the lawyers as they will file my case there. They are saying to remittance the amount but my bank is now asking me for 15CA/CB. I checked with my consultant and he mentioned that it is non-taxable as I’m not paying salary to the lawyer. Can anyone help me on this as this is really confusing for me.
Hello Sir,
We are indian based company selling our product on amazon in United Kingdom. We are taking service of a UK based company which files UK VAT for us. Now we have to pay this UK company for their services. Now whether we require to submit 15CA/CB or not.
Hello Sir,
We are indian based company selling our product on amazon in United Kingdom. We are taking service of a UK based company which files UK VAT for us. Now we have to pay this UK company for their services. Now whether we require to submit 15CA/CB or not.
i have an event management co which is a proprietor co. if i hire the services of an event co. abroad for an event in tht country and i need to remit payment against an invoice generated by them for the same, kindly advise what documents i need to submit to the bank for the same,
Sir please advice me whether from 15ca 15 cb have to submit if we need to make remittance to NRI towards commission on export sale.
iS IT NOT A FACT THAT THE REMITTANCE IS FROM A COMPANY IN INDIA AND ANOTHER COMPANY IS SINGAPORE WHICH REPRESENTS A TRADE PAYMENT?
I have sold house property in India for Rs.30 lacs and got capital gain of Rs.10.93 lacs. The purchaser has not deducted any tax from the payments made to me. I myself has paid the Capital Gains tax of Rs.1.75 lacs and now I want to transfer the money to USA where I am residing. When I went to Bank for transfer the money, the Banker has asked me to submit Form 15CA & CB. When I go through Form 15CA, it asks all the details regarding the Remitter. Now my query is who is the remitter and whose particulars should I given in Form 15CA
We are procuring raw material for our company so we have to file FORM 15CA/CB at the time of payment??
individual
what exactly you want? yeshwant
We need to make a remittance to buy spare parts for a machinery for our ship. Do we need 15CA and CB in this case
Hi Sir,
I sold my property in India around 3 years a go, Invested money in NHAI bond to get rebate on capital gain tax, tax was deducted on source when interest was earned. Now I want to transfer money from my NRO account to NRE account, I invested 47 lakhs.
Do I have to submit 15CA & 15CB? if yes what will be cost of each form?
Kind Regards,
Hemant.
Q1.
I need to transfer my earnings ( all Indian taxes duly paid) from when I was resident in India from my NRO account to NRE account.
DO I need form 15CA and CB if the funds are to be used to pay my loadn for property I bought in US or to pay for living expenses of self and family
Q2.
Can I transfer my funds from NRO to NRE account and then open fixed deposits in the NRE account to be tax efficient or any money transferred from NRO to NRE account needs to be necessarily repatriated to foreign account.
I AM IMPORTER RE SELLER DEALER BUT TOBE LIABLE FORM NO 15CA AND 15CB TO ME PLEASE IMFORM ME THANKING YOU
WE ARE ATHORISED IMPORTER RESELLER DEALER .FORM NO 15CA AND 15CB APPLICABLE TO ME.
whether form 15ca and 15cb is required if the amount is debited from my EEFC a/c please clarify
I Have one query to ask
one of my friend is resident at Paris since last 10year and had opt Green Card, as my friend want to purchase as row house in Paris he is in need to fund. His Father from India is willing to provide him 25000 UD pounds as help.
This amount is given as 0 % interest loan
will my Friends Father (Uncle) required to Submit from 15CA and 15CB.?
will My Uncle need to Show this amount as Loan with Deed Interest?
SIR PLEASE ADVISE ME NEW RULES FROM 15 CA & 15 CB
There are changes in 15CB/CA forms from april 2016 onwards.. i need a detailed clarifiction regardingd when part a and when part b should be filled?
Hi Sir/Ma’am,
I am running a tour and travel comp. “revolveholidays.com” I need to make payment in Singapore in Singapore Doller (SGD). Do i need to file 15CA and 15CB?
As my amount is just 400 Sgd, also let me know the free transaction limit.
Regards,
PANKESH
Hi All,
I am staying in London and my parents in India and they are gifting me money and sending money to UK via Wire/Swift transfer from their Resident Account to my accounts in UK (I am not a India resident). They are gifting money for my deposit to buy house in London.
My parents having account with Punjab National Bank and Central Bank of India. They visited to branch and Banks said that parents need to fill up “Form 2A” and “FEMA Declaration” and “Form15CA and Form15CB” . My worry is that we dont want to get into complexion of Form15CA/CB.
Would they need to fill up Form 15CA and Form 15CB ?, Can someone please advise me.
Many Thanks in Advance
Amit
I need a claifiction: In case of individual, what should be filled in space of “capacity” in last page of form 15CA Verification page?
Sir,
Whether 15CA/CB is required to be obtained for the foreign payments made through credit cards as we are not going to through any banking channel but paying directly through credit cards ??
Very good article, thanks for sharing
I want to transfer some amount to the Business Entity in Mauritius. for Professional Service Received.
No PE available in India for the Foreign Business Entity.
Tax Residency Certificate Available
Amount in Rs. 500,000/-
Is there any TDS liability arise?
Clarification:In case of form 15cb , a current payment does not exceed rs.50,000 but aggregate during the financial year exceeds Rs. two lakh fifty thousand… what form should i fill? whether part a or part b?
Tell me hw much time it take to get 15CA/CB form
Hi There,
To print a 15CA/CB attract any fees payable to NSDL? As per my CA each 15CA/CB is created by paying INR 2500/set without their service fees which is just way to expensive!
Any inputs here?
Dear Sir
Our NRI Client who stayed in Dubbai for 18 years wants to remit money from india to Abroad to his Bank account from his indian Bank Account.
Recently he sold one of House property in Mumbai for 75 Lakhs and his Long term capital gain was 15 Lakhs. From the sale Consideration the Purchaser of the House Property deducted TDS @ 1% as per Income Tax Act.
The above sale consideration is received in his Indian Bank Account.
Now for remittance of the above Capital Gains of 15 Lakhs he has to get Form 15CB certificate from a Chartered Accountant and the Assessee has to file Form 15CA.
In the Form 15CB the CA will verify the agreement and other details in the Form.
But i am having the following doubts.
1. Whether the remitter and remittee should be two different person.
If yes suggest me the procedure for transferring the funds by NRI him self from
his own account.
2. As we are certifying for deduction of TDS on the remitted amount but the same is not deducted at the rate of 20% as per Sec.195 but it is deducted at the rate of 1%., whether is it will be correct to certify the same.
3. The earned capital gains is invested in other house property in India, so capital gain exemption is available u/s 54 of the Income Tax act, whether by verifying the sale deed details for the investment made, can we certify for the remittance.
4. If the NRI has not invested the Capital Gain, whether he can transfer part of his capital gain to his abroad account by following any other procedure.
Kindly clarify the issues as soon as possible.
Non resident sold land to resident and paid money to NRO account maintained in bank in india of seller.The payment is made within India. Is it necessary to file Form No. 15CA & 15CB. As the same is not done and payment is made, how I can file Said form
I need to transfer some money from India to Calgary Canada, can you please advise if you can assist me in filling 15CA form.
I have educational loan sanctioned from PSU bank last year for further study of my son at Canadian University. Bank has remitted fees twice during last one year.
I have to remit fees for Fall Term next week.
Bank wants me to submit Form 15CA & CB.
Do I have to submit the same even if money is remitted through education laon account for educational purpose?
Warm Regards,
H T Dalal