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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 Description
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)

Registration process for Filing Form 15CB Pre-requisite

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.

Filing process of Form 15CB

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.

Filing process of Form 15CA

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

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63 Comments

  1. APP says:

    I am a foreign national working in India for last few years. I want to remit my post tax paid salary to my own foreign bank account (of my home country). What is the right mechanism for this? Is it LRS or is it using From 15 CA / 15CB?

  2. JAISON JACOB T says:

    Sir,

    For 15CA there is part A and part B. Please clarify the below queries on that.

    1. For part A, amount of remittance does not exceeds Rs 50000. Is it means Rs 50000 of payment to a particular non resident or Rs 50000 payment by the remitter.

    2. Also the aggregate amount does not exceeds Rs 250000. Is it means Rs 250000 of payment to a particular non resident or Rs 250000 payment by the remitter.

  3. CA Kiran Kakad says:

    Respected Sir,

    I have following queries on the subject.I would be obliged if you throw light on the same-
    Whether 15CA is required to be uploaded to IT site? Is it before Crediting the amount to the NR in the books of accounts or after Crediting the same in the books of accounts but before actual payment of the same to him or after actual payment of the same to NR and before its repatriation to foreign destination by the NR from his own NRO A/c or NRE A/c in a situation when payment is made to NR in INR and the same got deposited by him in NRO or NRE A/c? The words used in R 37BB (2) are “………….prior to remitting the payment.”
    What the CA should write in the Form 15CB in the boxes B 1,10 and 12 which ask for information in foreign currency in a case where payment is made to NR in INR and the same is credited by the NR in his NRO/NRE a/c?
    Your response is eagerly awaited.

    CA Kiran L.Kakad
    Mumbai
    7738378851

  4. N Krishnamurthy says:

    Dear Sir

    We are importing materials from outside India from Company and no individuals are involved. We pay advance of 20% against sales contract and balance 80% based on copy of Bill of Lading and other commercial documents. Both the payments are direct by swift. We received a circular from our bank to submit form 15AC and Form 15CB or A certificate from the AO u/s 197 of IT Rules or An order from AO u/ss (2) or ss (3) of s 195 of I T Rules for every payments. Are these mandatory for importing materials? Kindly advise.

  5. Pradeep Sharma says:

    Dear Sir/Madam

    my client has to refund a booking amount of a tour booked by a non resident foreign national as per agreed terms. Is any tds liability arise as per section 195. 15CA & 15CB required? please reply.thanks

  6. Pradeep Sharma says:

    Dear Sir/Madam

    my client has to refund a booking amount of a tour booked by a non resident foreign national as per agreed terms. Is any tds liability arise as per section 195. 15CA & 15CB required? please reply.

  7. gajendran says:

    i have foreign remittance ( Raw Material & other then raw material )made at the time Form 15 Ca & Cb must to be file compulsary

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