All about Form 15CA-Part-D-What? When? How?

Any foreign remittance made by any person (whether resident or non-resident) is hit by the provision of Sec. 195 of the Act. Sec. 195 casts withholding tax obligation on the payer to deduct tax at appropriate rate and deposit into Govt account before making payment to non-resident, if such payment is income liable to tax in India in hands of non-resident. On failure, payer would be consider as assesse in default. Whether every such payment, constitute income in hands of non-resident or not, in itself is vast area of litigation. However, in this article I would like to discuss requirement of Form 15CA particularity Part –D, which is most common Form issued by the consultants.

As per Rule 37BB, the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, shall furnish Form 15CA (which is self-attested certificate) which would accompany by 15CB (certificate issued by Chartered Accountant) , if needed.

Form 15CA contain four parts. Part-A, Part-B, Part –C and Part –D.

When to file Form -15CA-Part-D?

Before selecting which part is to be selected for Form -15CA, one needs to make sure, whether such income is taxable in India in hands of non-resident. If yes, then one is needed to file either Part-A or B or Part-C as per the circumstance of each case.

If no, that is if income of non-resident is NOT TAXABLE under the income tax by virtue the provision of Sec. 5 rws 9, then and only then, payer is required to file Form 15CA- Part –D for such payment. Here it is worth to note that; if such payment is taxable in India in India under the Act but due to any treaty benefit, it becomes non-taxable then payer is required to choose either Part-A or B or C and NOT Part –D.

Before coming to such conclusion, payer is needed to extra cautious.  As afterwards, if is found that such payment is taxable receipt in hands of non-resident, then assesse would be considered as assessee being payer would be considered as assessee–in-default and may liable to penal consequences.

The most common foreign remittance where Form-15CA-Part-D is issued is Sales Commission paid by the Resident Assessee to Non-Resident agent outside India for procuring business outside India on their behalf. In such case, since such non-resident performs his services outside India, it is safe to say that; he does not have any “Business Connection” in India.

Consultant can ask for following documents from his client to check taxability of such payment. By no means is the list exhaustive. It solely depends on fact and circumstance of the each case.

• Contract/ Agreement with the Vendor
• Tax Residency Certificate of the country of which Vendor is resident
• Form -10F

The details required to file Form 15CA-Part –D are very basic such as name, address, PAN of remitter and receiver, the sum in Indian and Foreign Currency to be remitted and bank details of remitter. Sample  of Form 15CA is enclosed.

Both Form 15CA- CB are filed electronically using digital signature. However, nowadays banks are accepting manual forms due to ongoing glitches of New IT Portal.

I want to conclude by saying that: many times clients ask for Form 15CA –CB in hurry in order to make quick payment, but being consultant it is our responsibility to look thoroughly into each payment and issue required certificates as per the law.

Income-Tax  Department

FORM NO. 15CA (See rule 37BB) Information to be furnished for payments to a non- resident not being a company, or to a foreign company

Ack. No.

Part A

(To be filled up if the remittance is chargeable to tax under the provisions of the Income- tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, does not exceed five lakh rupees during the financial year) 

RE MI TT   ER	Name of remitter
	PAN of the remitter (if available)
	TAN of the remitter (if available)
	Complete address, email and phone number of the remitter
	Status of remitter1
	Residential status of remitter2
RE MI TT   EE	Name of recipient of remittance
	PAN of the recipient of remittance, if available3
	Complete address, email4 and phone number5 of the recipient of remittance
	Country to which remittance is made
RE   MI TT AN CE	Amount payable before TDS (In Indian Currency)
	Aggregate amount of remittances made during the financial year including this proposed remittance
	Name of bank
	Name of the branch of the bank
	Proposed date of remittance
	Nature of remittance
	Please furnish the relevant purpose code as per RBI
	Amount of TDS
	Rate of TDS
	Date of deduction

VERIFICATION

I/We*, ________________________ (full name in block letters), son/daughter of                                     in the capacity of                                        (designation) solemnly declare that the information given above is true to the best of my knowledge and belief and no relevant information has been concealed. I/We* further undertake to submit the requisite documents for

enabling the income-tax authorities to determine the nature and amount of income of the recipient of the above remittance as well as documents required for determining my liability under the Income-tax Act as a person responsible for deduction of tax at source.

Place: ……………………

…………………………………….

Signature of the person responsible for paying to non-resident

……………………………………

Date: ………………

Name and Designation of the person responsible for paying to non-resident

* Delete whichever is not applicable.

1. Write 1 if company, write 2 if firm, write 3 if individual and write 4 if

2. In case of company, write 1 if domestic company, write 2 if foreign company, in case of person other than company, write 3 if resident, write 4 if non-resident

3. In case of non-availability of PAN, provisions of section206AA shall be applicable

4. If available 5.If available

Part B

(To be filled up if the remittance is chargeable to tax under the provisions of the Income- tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and an order certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.) 

RE MI TT ER	Name of remitter
	PAN of the remitter
	TAN of the remitter1
	Complete address, email and phone number of the remitter
	Status of remitter2
	Residential status of remitter3
RE MI TT EE	Name of recipient of remittance
	PAN of the recipient of remittance, if available4
	Complete address, email5 and phone number6 of the recipient of remittance
A.O.   OR DER	Section under which order/certificate has been obtained
	Name and designation of the Assessing Officer who issued the order/certificate
	Date of order/certificate
	Order/ certificate number
RE  MI  TT AN CE	Country to which remittance is made		Country:	Currency:____
	Amount payable		In foreign currency:	In Indian Rs.___
			Branch of the Bank
	BSR Code of the bank branch (7 digit)
	Proposed date of remittance			DD/MM/YYYY
	Nature of remittance as per agreement/ document
	Please furnish the relevant purpose code as per RBI
	Amount of TDS
	Rate of TDS
	Date of deduction

VERIFICATION

I/We*,                                                (full     name     in     block     letters),     son/daughter     of in the capacity of                                                        (designation) solemnly declare that the information given above is true to the best of my knowledge and belief and no relevant information has been concealed. I/We* certify that a certificate/order under section 195(2)/195(3)/197 of the Income-tax Act, 1961 has been obtained, particulars of which are given in this Form. I/We* further undertake to submit the requisite documents for enabling the income- tax authorities to determine the nature and amount of income of the recipient of the above remittance as well as documents required for determining my liability under the Income-tax Act as a person responsible for deduction of tax at source.

Place: ……………………

…………………………………….

Signature of the person responsible for paying to non-resident

……………………………………

Date: ………………

Name and Designation of the person responsible for paying to non-resident

* Delete whichever is not applicable.

1 In case TAN is applied for, please furnish acknowledgement number of the application. 2 Write 1 if company, write 2 if firm, write 3 if individual and write 4 if others.

2 In case of company, write 1 if domestic company, write 2 if foreign company, in case of person other than company, write

3 if resident, write 4 if non-resident.

4 In case of non-availability of PAN, provisions of section206AA shall be

5 If available

6 If available.

Part C

(To be filled up if the remittance is chargeable to tax under the provisions of Income-tax Act, 1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288 has been obtained)

Section A

GENERAL INFORMATION

RE MI TT ER

Name of the remitter

PAN of remitter

Area Code

Range Code

AO Type

AO No

Principal Place of Business

TAN of remitter1

Complete address, email and phone number of the remitter

Status2

Residential status of remitter3

RE MI TT EE

Name of recipient of remittance

PAN of recipient of remittance4

Status5

Address

Country to which remittance is made:

Principal place of business

Email address

(ISD code)-    () Phone Number

AC   CO   UN TA NT

(a)

Name   of   the    Accountant6                signing the certificate

(b)

Name of the proprietorship/firm of the accountant

(c)

Address

(d)

Registration No. of the accountant

(e)

Date of certificate (DD/MM/YYYY)

Certificate No.7

A.O.

(a)

Whether any order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.

(Tick) …. Yes …. No

OR DE R

(b)

Section under which order/certificate has been obtained

(c)

Name and designation of the Assessing Officer who issued the order/certificate

(d)

Date of order/certificate

(e)

Order/ certificate number

–

Section B

PARTICULARS OF REMITTANCE AND TDS ( as per certificate of the accountant)

1.

Country to which remittance is made

Country:

Currency:

2.

Amount payable

In foreign currency:

In Indian Rs.

RE

3.

Name of the Bank

Branch of the Bank

MI

TT

4.

BSR Code of the bank branch (7 digit)

AN

5.

Proposed date of remittance

DD/MM/YYYY

)

CE

6.

Nature of remittance as per agreement/ document

7.

Relevant purpose code as per RBI

8.

In case the remittance is net of taxes, whether tax payable has been grossed up?

(Tick)

Yes

No

9.

Taxability under the provisions of the Income-tax Act (without considering DTAA)

I.T.

(a) the relevant section of the Act under which the remittance is covered

AC

(b) the amount of income chargeable to tax

T

(c) the tax liability

(d) basis of determining taxable income and tax liability

10.

If any relief is claimed under DTAA-(i) whether

tax residency certificate is obtained from the

(Tick)

Yes

No

recipient of remittance

DT

(ii) please specify relevant DTAA

AA

(iii) please specify relevant article of DTAA

Nature of payment as per DTAA

(iv) taxable income as per DTAA

In Indian Rs.

(v) tax liability as per DTAA

In Indian Rs.

A. If the remittance is for royalties, fee for

technical services, interest, dividend, etc., (not connected with permanent establishment) please indicate:-

(Tick)

Yes

No

(a)Article of DTAA

(b) Rate of TDS required to be deducted in terms of such article of the applicable DTAA

As per DTAA (%)

B. In case the remittance is on account of

____

Section B

PARTICULARS OF REMITTANCE AND TDS ( as per certificate of the accountant)

1.

Country to which remittance is made

Country:

Currency:

2.

Amount payable

In foreign currency:

In Indian Rs.

RE

3.

Name of the Bank

Branch of the Bank

MI

TT

4.

BSR Code of the bank branch (7 digit)

AN

5.

Proposed date of remittance

(

DD/MM/YYYY

)

CE

6.

Nature of remittance as per agreement/ document

7.

Relevant purpose code as per RBI

8.

In case the remittance is net of taxes, whether tax payable has been grossed up?

(Tick)

Yes

No

9.

Taxability under the provisions of the Income-tax Act (without considering DTAA)

I.T.

(a) the relevant section of the Act under which the remittance is covered

AC

(b) the amount of income chargeable to tax

T

(c) the tax liability

(d) basis of determining taxable income and tax liability

10.

If any relief is claimed under DTAA-(i) whether

tax residency certificate is obtained from the

(Tick)

Yes

No

recipient of remittance

DT

(ii) please specify relevant DTAA

AA

(iii) please specify relevant article of DTAA

Nature of payment as per DTAA

(iv) taxable income as per DTAA

In Indian Rs.

(v) tax liability as per DTAA

In Indian Rs.

A. If the remittance is for royalties, fee for

technical services, interest, dividend, etc., (not connected with permanent establishment) please indicate:-

(Tick)

Yes

No

(a)Article of DTAA

(b) Rate of TDS required to be deducted in terms of such article of the applicable DTAA

As per DTAA (%)

B. In case the remittance is on account of

____

		business income, please indicate:-	(Tick)		Yes			No
		(a) The amount of income liable to tax in India
		(b) The basis of arriving at the rate of deduction of tax.
		C. In case the remittance is on account of capital gains, please indicate:-	(Tick)		Yes			No
		(a) amount of long term capital gains
		(b) amount of short-term capital gains
		(c) basis of arriving at taxable income
		D. In case of other remittance not covered by sub-items A, B and C			Yes			No
		(a)  Please specify nature of remittance (b)  Whether taxable in India as per DTAA
		(c) If yes, rate of TDS required to be deducted in terms of such article of the applicable DTAA
		(d) if not, please furnish brief reasons thereof specifying relevant article of DTAA
TD S	11.	Amount of tax deducted at source	In foreign currency
			In Indian Rs.
	12.	Rate of TDS	As per Income-tax Act (%) or As per DTAA (%)
	13. 14.	Actual amount of remittance after TDS Date of deduction of tax at source, if any	In     foreign     currency (DD/MM/YYYY)

VERIFICATION

 I/We*,                  (full name in block letters), son/daughter of                                in the capacity of                                (designation) solemnly declare that the information given above is true to the best of my/our* knowledge and belief and no relevant information has been concealed. I/We* certify that a certificate has been obtained from an accountant, particulars of which are given in this Form, certifying the amount, nature and correctness of deduction of tax at source. In case where it is found that the tax actually deductible on the amount of remittance has not been deducted or after deduction has not been paid or not paid in full, I/We* undertake to pay the amount of tax not deducted or not paid, as the case may be, along with interest due. I/We* shall also be subject to the provisions of penalty for the said default as per the provisions of the Income-tax Act, 1961. I/We* further undertake to submit the requisite documents for enabling the income-tax authorities to determine the nature and amount of income of the recipient of the above remittance as well as documents required for determining my/our liability under the Income-tax Act, 1961 as a person responsible for deduction of tax at source.

Place: ………………

………………………………….

Signature of the person responsible for paying to non-resident

…………………………………

Name and Designation of the person responsible for paying to non-resident

Date: …………

* Delete whichever is not applicable.

1In case TAN is applied for, please furnish acknowledgement number of the application. 2 Write 1 if company, write 2 if firm, write 3 if individual and write 4 if others.

3 In case of company, write 1 if domestic company, write 2 if foreign company, in case of person other than company, write 3 if resident, write 4 if non-resident.

4In case of non-availability of PAN, provisions of section 206AA shall be applicable. 5 Write 1 if company, write 2 if firm, write 3 if individual and write 4 if others.

6Accountant shall have the meaning as defined in Explanation below sub-section (2) of section 288 of the Income- tax Act, 1961.

7Please fill the serial number as mentioned in the certificate of the accountant.

Part D

[To be filled up if the remittance is not chargeable to tax under the provisions of the Income-tax Act, 1961 {other than payments referred to in rule 37BB(3)} by the person referred to in rule 37BB(2)] 

RE MI TT ER	Name of the remitter
	PAN of the remitter, if available
	TAN of the remitter, if available
	Complete address, email and phone number of the remitter
	Status of remitter1
	Residential status of the remitter2
RE MI TT   EE	Name of recipient of remittance
	PAN of the recipient of remittance, if available
	Complete address, email3 and phone number4 of the recipient of remittance
	Country to which remittance is made Country:		Currency:
	Country of which the recipient of remittance is resident, if available
RE MI TT AN CE	Amount payable	In foreign currency:	In Indian Rs.
	Name of the bank	Name of the branch of the bank
	BSR code of the bank branch (7 digit)
	Proposed date of remittance		(DD/MM/YYYY)
	Nature of remittance
	Please furnish the relevant purpose code as per RBI

2. I certify that I have reason to believe that the remittance as above is not chargeable under the provision of Income-tax Act 1961 and is not liable for deduction of tax at source.

VERIFICATION

I/We*,                       (full name in block letters), son/daughter of                                    in the capacity of                                    (designation) solemnly declare that the information given above is true to the best of my/our* knowledge and belief and no relevant information has been concealed. In a case where it is found that the tax actually deductible on the amount of remittance has not been deducted or after deduction has not been paid or not paid in full, I/We* undertake to pay the amount of tax not deducted or not paid, as the case may be, along with interest due. I/We* shall also be subject to the provisions of penalty for the said default as per the provisions of the Income-tax Act, 1961. I/We* further undertake to submit the requisite documents for enabling the income-tax authorities to determine the nature and amount of income of the recipient of the above remittance as well as documents required for determining my/our* liability under the Income-tax Act as a person responsible for deduction of tax at source.

…………………………………………….

Signature of the person responsible for paying to non-resident

Place: ………………

………………..………………………………

Name and Designation of the person responsible for paying to non- resident

Date: ………………

* Delete whichever is not applicable.

1 Write 1 if company, write 2 if firm, write 3 if individual and write 4 if

2 In case of company, write 1 if domestic company, write 2 if foreign company, in case of person other than company, write 3 if resident, write 4 if non-resident.

3 If

4 If

For Office Use only

For Office Use Only Receipt No. ……………… Date ……………… Seal and Signature of receiving official