Basic Understanding on Form 15CA and 15CB

What is form 15CA?

As per Section 195, every person making a payment to Non-Residents whether individual, or  a Foreign Company, shall deduct TDS if such sum is chargeable to Income Tax and the details are required to be furnished in Form 15CA.

• As per Section 195, every person making a payment to Non-Residents whether individual, or  a Foreign Company, shall deduct TDS if such sum is chargeable to Income Tax and the details are required to be furnished in Form 15CA.
• A person responsible for making such remittance (payment) has to submit the form 15CA, before remitting the payment. This form can be submitted both online and offline mode. In certain cases, a Certificate from Chartered Accountant in form 15CB is required before uploading the form 15CA online.

What are different types of Form 15CA?

The furnishing of information for payment to Non-Residents whether individual, or  a Foreign Company in Form 15CA has been classified into 4 parts. The different types of form 15CA are as under:

• PART A: Where the remittance or the aggregate of such remittance does not exceed ₹5 lakh during the F.Y.
• PART B: Where remittance or the aggregate of such remittances exceed 5 lakh rupees during the FY and an order / certificate u/s 195(2) / 195(3) /197 of the Act has been obtained from the Assessing Officer.
• PART C: Where the remittance or the aggregate of such remittance exceed ₹5 lakh during the FY and a certificate in Form No 15CB from an accountant has been obtained.
• PART D: Where the remittance is not chargeable to tax under the Income Tax Act, 1961.

Who is required to file Form 15CA?

As per Rule 37BB, any person responsible for paying to a Non-Resident, whether it is a, Foreign Company or not, shall furnish such information in Form 15CA.

Is it mandatory to submit Form 15CB?

No, it is not mandatory to submit Form 15CB. Form 15CB is an event-based form to be filled only when the remittance amount exceeds ₹5 lakh during a financial year and a person is required to furnish a certificate from an accountant defined as per Section 288.

Can Form 15CA be withdrawn?

No, there is no option to withdraw Form 15CA

When is Form 15CAnot required to be furnished?

In accordance with sub-rule (3) of Rule 37BB of Income Tax Act, 1961, information in Form 15CA is not required to be furnished in case of following transactions:

• Remittance is made by an individual and does not require prior approval of RBI
• Remittance is of the nature specified under relevant purposes code as per RBI
• Requirement for form 15CA/CB. When a person makes any payment or remit any money to non-resident, the bank will check the applicability of taxes.There are various types of foreign remittances where a person does not require any submission of Form 15CA or Form 15CB. If the remittance or the aggregate of remittances to a single person exceed INR 5 lakh in a particular financial year, you need to fill Form 15CB.

What is Form 15CB?

Form 15 CB is Form which is required to be signed by a Chartered Accountant. This is a certification regarding rates and type of taxes to be paid by a person making remittances.

What are the cases where Form15CB is not required?

List of payments where there are no requirement of form 15CB:

What is the mandatory information required for filing Form 15CA/CB?

Details of Remitted

• Name of the remitter
• Address of the remitter
• PAN of the remitter
• Principal place of business of the remitter
• E-Mail address and phone no. of remitter
• Status of the remitter (firm/company/other)

Details of Remittee

• Name and status of the remittee
• Address of the remittee
• Country of the remittee (country where remittance is to be made)
• Principal place of the business of the remittee

Details of the remittance

• Country to which remittance to be made
• Currency in which remittance to be made
• Amount of remittance in Indian currency
• Proposed date of remittance
• Nature of remittance as per agreement

Bank details of the remitter

• Name of the remitter’s bank
• Name of branch of the bank
• BSR Code of the bank

Others

• Father’s name of the signing person
• Designation of the signing person

Documents from the remittee

• Form 10F duly filled by the authorized person of the remittee.
• Tax residency certificate from the remittee (tax registration of the country where remittee is registered).
• Certificate that the remittee does not have any permanent establishment in India.

Taxcellent helps you in filing form 15CA/CB form making foreign remittances and Income Tax Return Filing in Delhi India.