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CA Pratik Anand

CA PRATIK ANANDThe new rules for preparation, filing/ issuing forms 15CA and 15CB are effective from 01st April’2016.

With these new rules coming into effect significant changes have come into effect for furnishing forms 15CA & 15CB.

Some of the key changes for furnishing form 15CA & 15CB that have come into effect from 01st April’2016 are:

1. Both forms 15CA and 15CB are to be filed online

Earlier only form 15CA had to be filed online but now form 15CB i.e certificate by a Chartered Accountant is also to be filed online.

2. Changes in requirement for filing form 15CA & 15CB

A) There are situations where Forms 15CA/CB will not be required at all:

♣ No forms 15CA & 15CB will be required to be furnished by an individual for remittance which does not require RBI approval under Liberalised Remittance Scheme.

♣ The list of payments where there is no requirement for forms 15CA, 15CB has been expanded under Rule 37BB. Following are the new entries in the specified list where no forms 15CA CB are required:

  • Advance Payment against import
  • Payment towards import-Settlement of Invoice
  • Imports by diplomatic missions
  • Intermediary Trade
  • Import below Rs. 5,00,000/- (For use by ECD offices)

Overall List of Payments where no forms 15CA CB are required is as follows :-

Sl. No. Purpose code as per RBI Nature of payment
(1) (2) (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.

B) There are situations where no forms 15CB will be required:

  • Form 15CB will not be required till the aggregate of remittances during the financial year does not exceed Rs. 5 lakhs.
  • Form 15CB will also not be required where order/certificate of lower/no deduction is taken from the Jurisdictional Assessing Officer us 195(2), 195(3), 197 of the Income Tax Act’1961.
  • Form 15CB is also not required where the remittance is not chargeable to tax.

C) Different parts/sections of Form 15CA required for different types of remittances:

Form 15CA has been divided into four different parts/sections and each part is required in different circumstances:

Part A

Where the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances does not exceed five lakh rupees during the financial year.

Part B

Where the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances 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

Where remittance is chargeable to tax under the provisions of Income-tax Act, 1961 and the remittance or the aggregate of such remittances 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

Where 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).

D) New Form 15CC prescribed:

Prescribed form No. 15CC for Quarterly statement to be furnished by an authorised dealer in respect of foreign remittances made by it.

E) Penalty of Rs. 1 lakh for each default of non-filing for forms 15CA/CB will be applicable

F)   Procedure for submission of Form 15CA Online w.e.f. 01.04.2016

There is change in the Procedure for filing Form 15CA. New Procedures is given here under for submitting FORM 15 CA from 01.04.2016

Step 1:- Generate Signatures with the  DSC Management Utility provided by the Income Tax Department and USB token / pfx file for each Form for submitting FORM 15CA.

Step 2:- Login with USER ID /Password and date of  Birth/ incorporation on Incometaxindiaefiling.gov.in  and navigate to the menu “e-File” → “Prepare and Submit Online Form (Other than ITR)”  Upload signature file and   → Select “Form 15CA”.

Step 3:- Click on “Form 15CA” tab and Select the appropriate part (“PART-A”, “PART-B”, PART-C” or “PART-D”) based on the remittances as applicable.
Step 4:- Fill in the details and click the “Submit” button. Errors, if any, will be shown on the right panel of the Form.

Step 5:- On successful validation, Click on Submit.

On successful submission it will be sent to the  E Mail Id on record and receipt can be generated from →My Account  → View Form 15CA → Select the Acknowledgement No. and print

G) Now there is an option for withdrawal of Form 15CA before payment. Form 15CA can be withdrawn within 7 days of submission of the online form.

(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 52
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

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17 responses to “New Rules for form 15CA & 15CB- Things to be kept in mind”

  1. Fayesal Siddiqui says:

    I have a client who wants to transfer money from sale of his house property (after paying due capital gain) to his account in Kuwait. Is 15CA and/or 15CB needed in this case where the money is only being transferred from ones own account (in India) to another account (also own account) in another country?

  2. Hemant Ladgaonkar says:

    I am a commission agent in International Textile business. Some times I have to pay commission to my Spanish and Portuguese counterpart( IN USD).
    SHall I need to submit 15 CA and 15 CB form, with all shipment documents for order.

  3. Priyanka says:

    Sir, if a doctor who is rendering services to clients sent from saudi Arabia ( institution where has a memebership as a registered Doctor) for expartriates checkup and in turn remits back 10% of fees received from clients back to Saudi Arabia Institution is he liable to deduct TDS on such remittance as a professional service under sec 194J. DTAA agreement does not exists.Is 10% rate of TDS deduction on such remittance is proper. Kindly reply at earliest.

  4. Capt Ranjan says:

    I had invested in icici prudential policy for last ten years from my Nre savings account.Now the policy has matured and the maturity Sum has been deposited to my NRO account.I wish to transfer the money from my NRO account to NRe account in order to save the taxes on interest and the Sum is around 50 lakh.Do I require to produce form 15ca and form 15cb.Kindly also advise for the rest of the procedure.
    thanks

  5. Ramesh Shishu says:

    I am a USA citizen with OCI card.
    I want to transfer funds from my NRO to my NRE account. My CA does not know what remittance purpose is to be chosen under rule 37 BB.
    Please advice.

  6. kumar says:

    hi

    i am a research student at university of glasgow , UK. i need to make transfer of my funds in to my indian bank account to my UK bank account in order to cover my tution fee and living expenses. total amount needed exceed the limit of 5 lacks so i was wondering if you could come with any idea relating to consolidation of my expenses in UK.

    total amount needed is 50 lac in a go for the financial year 2016-17 and another 50 for finacial year 2017-18.

    cheers

  7. nishant varsani says:

    i am buying shares in a overseas company . now i have a opened a local bank account overseas . i want to transfer funds from my indian account to my personal account overseas and then make the investment locally . so will i need 15CA and 15 CB both. or just 15 CA part D .

  8. Ashwin Panemangalore says:

    My son who is an NRI was joint holder in a local savings bank account with my mother who was principal holder My mother passed away The bank after due process has changed this account to an NRO account making my son as principal holder A sum of Rs 10 lacs is lying in this account which were my mothers savings Now as principal holder, my son wants to transfer this to his own account abroad My question is i) Does he have to file form 15CA or CB and ii) if yes Can he file the form 15CA under Part D being not liable to tax ? He has had no earnings in India though he has a PAN number

  9. Prashant says:

    What should i do if i want to pay sum to an artist coming from abroad country?
    Kindly let me know. We are running a partnership firm. we have PAN number but we have not DCS.

  10. Puneet says:

    Greetings Sir,
    Is it possible to cancel or withdraw Form 15 CB that we filed? Or can we revise the same ?

    Regards,

  11. Anjali Mary says:

    Hi Sir,
    So as per the amended rules for import of material/consumables (any value) by an entity in Bangalore, no 15CA and 15CB required. Is there any upper limit for the import value?

  12. Hitesh Chandarana says:

    Sir,
    some basic info are reqd:
    1) what exactly the meaning of: Imports below Rs.5,00,000 – (For use by ECD offices)
    2) Form 15CB will not be required till the aggregate of remittances during the financial year does not exceed Rs. 5 lakhs. Whether it is aggregate of taxable remittance or taxable and non taxable remittance ?
    3) once the limit of rs.5 lakhs is reached, should we give information of earlier remittances as well.
    4) Part D says: Where 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).- so when there is remittance of principal amount of loan which exceeds 5 lakhs, but interest thereon is less than 5 lakhs should 15ca be filed? Note this remittance is tax free.
    5) in case there is remittance of principal amount of loan exceeding 5 lakhs and interest also exceeds rs.5 lakhs, both info can be given in one 15ca or two separate 15ca are to be filed?

  13. VAMSI KRISHNA VINJANAMPATI says:

    where should i download 15ca form

  14. VAMSI KRISHNA VINJANAMPATI says:

    Sir I am unable to see latest 15CA form in the income tax portal, plz suggest

  15. Riddhi says:

    Sir,

    Withdrawal of 15 CA nullify the effect of 15 CB??

  16. Ghanshyam says:

    Sir, what should be remedy if wrongly clicked / withdrawn 15CA after payment

    • Santosh M. Unecha says:

      sir if we are organizing an international film festival and if paying screening fees for the international film to the distributes in abroad and if amount is less then 5 lakhs per agency than want to know that still we have to pay 15ca 15 cb?

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