Currently, remittances to non-residents are allowed by banks if the person making the remittance furnishes an undertaking, accompanied by a certificate from a Chartered Accountant (“CA”) certifying the rate for withholding tax as per section 195 of the Act. The banks then forward the certificates to the Reserve Bank of India (“RBI”), which in-turn forwards it to the Income tax department.
Section 195(6) requires the person responsible for making payment to a non-resident to furnish information relating to such payments in forms to be prescribed. The Central Board of Direct Taxes (“CBDT”) prescribed rule 37BB in the Income Tax Rules, 1962 (“the rules”) prescribing Form 15CA and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This rule is applicable to all remittances being made after July 1, 2009.
The process that will have to be followed, before any remittance can be made, is as under—
A person making a payment to a Non Resident or a Foreign Company has to submit Form 15CA. Depending on amount and taxability of payment, specific parts of Form 15CA need to be filled:
|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)|
|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, does not exceed 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.|
|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|
|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)|
In order to file Form 15CB, Taxpayer must Add CA. To add CA, please follow the below steps.
Step 1 – Login to e-Filing Portal, Navigate to “My Account -> Add CA”.
Step 2 – Enter the Membership Number of the CA.
Step 3 – Select 15CB as Form Name and Click Submit.
Once the taxpayer adds the CA, the CA can file Form 15CB in behalf of the Taxpayer. In order to file Form 15CB, Chartered Accountant must follow the below steps.
Step 1 – User should be registered as “Chartered Accountant” in e-Filing. If not already registered, user should click the link Register Yourself in the homepage.
Step 2 – Select “Chartered Accountants” under Tax Professional and click Continue.
Step 3 – Enter the mandatory details and complete the registration process.
Step 1 – Download FORM 15CB utility from Downloads page and prepare the XML File.
Step 2 – Login to e-Filing, Go to e-File -> Upload Form, Enter PAN/TAN of assesse, PAN of CA, Select Form Name as 15CB, Select Filing Type as Original.
Step 3 – Upload the XML generated from the downloaded utility. Upload the signature file generated using DSC Management Utility for the XML.
Note: DSC is Mandatory to file Form 15CB.
Step 4 – On Successful Validation, Form 15CB is uploaded in e-Filing Portal. Success message is displayed.
Step 1 – Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
Step 2 – Go to the ‘e-File’ menu located at upper-left side of the page ⇒ Click ‘Prepare and Submit Online Form (Other than ITR)’
Step 3 – Select ‘Form 15CA’ from the dropdown list ⇒ Click Continue
Step 4 – Generate signature for the zip file using DSC Management Utility (available under Downloads) and upload the generated signature file.
Note – Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To prefill the details in Part C of Form 15CA, the Acknowledgment number of e-Filed Form 15CB should be provided.
Step 5 – Fill in all the mandatory details and click “Submit”.
Step 6 – On successful submit, the user will be redirected to Success page.
Republished with Amendments