CA Pankaj G. Shah

CA-Pankaj-ShahForm 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. In the modern times, the system for selection of cases into scrutiny have reduced drastically and without scrutiny there was no check to ensure that taxable foreign remittances have been made after deduction of tax or not. Therefore, the remittance channel i.e. Banks have been directed to obtain Form 15CA and 15CB before making any remittance. 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.

The issue which has arisen here is that 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”

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“(To be filled up if the remittance is chargeable to tax and does not exceed fifty thousand rupees and the aggregate of such remittances made during the financial year does not exceed two lakh fifty thousand 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 the confusion has been created to Banks since a list has been provided in Rule 37BB where no information in Form 15CA is required and therefore except for the items provided in the list, Banks are insisting for Form 15CA even though the payment is not chargeable to tax. 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.

How would one come to know that the remittance is chargeable to tax or not?

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.

(The author can be reached at pankajgshah@gmail.com or on +91 96918 93040 for any queries)

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One response to “Form 15CA and Form 15CB when remittance is not taxable”

  1. Nazim Khan says:

    Sir,
    i am required to pay penalty to a foreign company(not having a pan no.). This Penalty will not be treated as an expense in my books of account. Kindly advise as to 1. Should i deduct TDS ?? (if yes i believe its 20%) 2. Which part of form 15CA should i fill.?

  2. Nanda NK says:

    Sir, Can we reverse 15CA return?

  3. Nanda NK says:

    Sir, we paid TDS and i want to know how we can claim for 15CB refund

  4. RAJINDER SINGHAL says:

    NOW 15 CA CB FARM REQUIRED OR NOT FOR TRANSACTION THE PAYMENT OF IMPORT THE GOODS FROM CHINA

  5. udayakumar says:

    Sir , I want to open nre .but I don’t know deference nro .Now I have depot in nro ,now tax come for interest for every time so I can change nre is possible or no.

  6. udayakumar says:

    Sir, i am nro account holder. I was transferred mony from overseas remitans and fixed deposit Rs.450000 but . Now tax came for me , in this time also working overseas. How I want claim the taxable mony.

  7. Satish Biradar says:

    $3800 X 66.10 DOLLAR PAID TO OUR EMPLOYEE, WE HAVE SALARY TDS NOT DEDUCTED BUT SALARY TDS APPLICABLE OR NOT.

  8. Dinesh Raturi says:

    Dear Sir

    If I make a foreign remittance to USA for purchase and import of Paper And Plastics , do I need to file a 15CA/CB for the same?

    Thanks

  9. Shreyans says:

    i wanted to know, whether any amount paid as margin money to any metal exchange attracts 15 CA an 15 CB both?
    i feel, 15 CB is any how applicable, but, as there is no TDS to be done for payment of margin money, 15 CA is not application and not required to be produced.

  10. PAULUS BERACHAH says:

    Dear Sir,

    I need to send every month 100000 usd to outside India for import purchase of Timber. Do I have to give 15 CA AND 15 CB form.

    Thanks.

  11. CA VIVEK KUMAR SINGHAL says:

    THANKS FOR SHARING VALUABLE TOPIC AND SPEND YOUR PRECIOUS TIME

  12. viswanath says:

    I am taking loan for education purpose and remitting to my daughter .full amount is loan from bank from which i am transferring. Is it that i should submit 15CA/CB forms.
    I am not having a regular CA as i am regular (self appraisal) income tax payer.
    Pl can anyone enlighten

  13. BALWANT SINGH says:

    Sir,

    I am usually paying fees of my son in US$ who is studing in Ukraine. Now bank has asked to submitt 15 CA CB. Please guide whether it required or exemted in such case.

    Regards,

  14. S G Gadagkar says:

    We are making advance payment for import of components from outside India, i.e. Italy. Now the Bankers are insisting us to submit Form No 15CA & 15CB for wire transfer, we request you to please guide us whether form No 15CA & 15CB is applicable us or not.

    Thanking You,

    S G Gadagkar
    Miven Machine Tools Ltd.
    – See more at: https://taxguru.in/income-tax/requirement-form-15ca-form-15cb-remittance-taxable.html#sthash.TgSzFZjI.dpuf

  15. Priyanka says:

    If I make a foreign remittance to USA for purchase and import of medical equipment , do I need to file a 15CA/CB for the same?

    Thanks

  16. Sunil Bijlani says:

    Sir ,

    Need clarification in ref to submission of 15 CA & 15 CB form , We are Outbound Tour company offer International vacation to Honeymooners & families [ not groups] due to which we have to remit payment to Hotels , Sightseeing tour operators based abroad .
    My bank states effective 1 june 2015 we will have to submit Form 15 CA & 15 CB signed by the CA . is it compulsory and has it been brought in effect . as there is confusion of we have to or we dont need to . please offer your expert advise.
    Thanking you
    Sunil Bijlani

  17. Niranjan Sohande says:

    Business became more difficult with the cumbersome online Form 403 where the buyer sitting in another State has to fill in the vehicle number, driver’s name and checkpost entry before his goods are dispatched.

    Now one more hurdle to doing business – this new guideline of Form 15 CA CB for importing. My CA who does not understand my products charges Rs. 1500/- for one 15 CA CB form. Small importers and business will be hit by delays and additional expenditure.

    Achhe Din have gone!

  18. Loknath says:

    Can anyone suggest me the procedure for outward remittance on importing international sim cards. does it come under taxable or not? let me know how should on ahead.

  19. Mayank Modi says:

    I/ We hereby declare & confirm that amount to be remitted is not chargeable to be taxed in India because the transaction is made on principal to principal basis which was entirely concluded outside India and No income accrued to non-resident beneficiary in India. Therefore Form 15CA and Form 15CB as per provisions of Rule 37BB of the Income Tax Rules, 1962 are not required to be submitted.

    and bank told that you have to submitting form 15ca & form 15cb so please guide me any circular or authentic proof so i can saw to bank ir is required or not

    Please

    Thanking You
    Mayank

  20. Bisu says:

    did i need to fill 15 ca and 15 cb if i’m pay someone who have no setup office in india ?
    if no then how i preside with bank
    i want to send payment to my publisher through swift!

    Thankss

  21. Maulik Nayee says:

    Details about form 15CA and 15CB.

  22. Maulik Nayee says:

    Details of form 15CA and 15CB

  23. ABHISHEK KUMAR GUPTA says:

    HELLO SIR

    THANK YOU….

  24. jayashree.L says:

    send me the updates in taxes

  25. Jay Jeshrani says:

    Hi,

    I own a tours and travel company operating out of India, I do national as well international tours. For this purpose, I need to perform international transfers to my vendors. Am I required to submit form 15 CACB for each and every remittance? My CA charges INR 1500 for each certification of form 15 CA. Advice to how I can avoid such charges and also perform my transfers smoothly.

    Thanks,

    Jay Jeshrani

  26. Hemant Kumar Jha says:

    i have not understant in this topic so please you send full information to my mail

  27. B B GARG says:

    Is 15CA & 15CB is required to be filed in the case if a non Resident transfer its own money from bank in India to Foreign.

  28. VIJAYAKUMAR V says:

    Thank you for your advise on Form 15CA & Form 15CB

  29. Anand says:

    Hi
    INR cheque cannot be deposited into an NRE account in case you have an NRO account the cheque can be deposited…….

  30. Raman Joshi says:

    Hi Folks,

    I just want to know about requirement of 15CB &15CA on foreign payment “remittance” for online hotel booking business, also do it attract any Tds, if yes under which section.

    Say if the domestic company running business for international Hotel booking.

    With Regards,

    Raman

  31. raju says:

    remittance of export commission to a foreign agent attracts tds u/s 195

  32. MM says:

    I Wisher to know that As per the DTAA under Article 8, I am out of TDS. so i dont have to submit 15CA, then why banks are asking for 15CA for remittance?

    Is there any one to guide?

  33. Kavitha says:

    Hello,

    Thanks for the clarification over the phone also for this article.

  34. shankar says:

    hi

    Expats working in india want to send money abroad under family maintenane scheme…Whether FORM 15 CA CB is required for making this remittance ? As per RBI circular under purpose code – S1301 Remittance by non-residents towards family maintenance and-savings, they are exempted for Form 15CACB. But bank people are insisting for FORM 15 CA CB staing that remittance from their account should be net of taxes and therefore though the purpose ” family maintenance and savings” falls under the exempted list of 28 purposes, 15 CA CB is still required for any amount of remittance / draft from their EXPATS accounts…..Pls advise

  35. Vinod Tolambia says:

    Who can sign form15CA

  36. ajay says:

    I hv withdrawal rs 10 lkh 6 month ago frm my nre ac to purchase some properties bt deal was cancel nd frm builder i received a cheqe in indindian currency for the same amount. Can i deposit same cheque in my nre ac ? If bank ask form 15 ca nd 15cb , does i hav to submit the same to the bank ?

  37. ram says:

    Am repaying the loan received from my friend NRI in monthly terms say $700 a month. Bank insisting in 15CB and 15CA for remittance to NRI friend at US, which has TDS to be deducted etc.
    Can i transfer only loan repayment amount? Is there any tax (tds) applicable here?

  38. ROHIT KHANNA says:

    i am small class importer
    In what circumstances not could making form-15cb

  39. rakesh kr jain says:

    sir
    my client import material from out out side india. bank required form 15 CA for remitance form us. their is any documentation/ pre caution to save us for non deduction of tax in form 15 CA

  40. Dr.CH.D.RAVINDRA NATH says:

    Very much informative

  41. ca hitesh says:

    Sir,
    Remittance consists of principal amount and interest. What should we require to write in form 15cb against item no. B-2 ie. amount payable – gross amount i.e. principal plus interest or only interest which is taxable? Against item B-6- Nature of remittance – Principal and interest or only interest?
    Will it make any difference if payment consists of principal amount for goods imported and interest is for late payment thereof and if payment consists of loan and interest thereon?

    Thanks in advance.
    Hitesh k c

  42. CA DINESH DESWAL says:

    Good article sir.

  43. CA.Sanjay Chopra says:

    This is quite informative Pankaj ji..Still Banks reiterate on filing the same n get it certified from CA irrespective of the clause mentioned in Act..

    I believe RBI guidelines in this regard may help…

    Thanks for sharing the nice information

  44. Rahulkumar .A. Singh says:

    Really well..

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