Applicable Section and Rules:– Section 195 of the Income Tax Act 1961 and Rule 37 BB of Income Tax Rules, 1962.
No remittance should be made to a non-resident without furnishing an undertaking in Form 15 CA accompanied by a Certificate from a Chartered Accountant in Form 15CB hence any Person making the Payment to non- resident shall obtain a certificate from a Chartered Accountant in Form 15CB
Procedure for furnishing of form:
1. The Remitter shall electronically upload Form 15CA.
2. The Information furnished in the Form 15CA is to be filed using the information contained in Form 15CB.
3. The duly signed form Form 15CA and Form 15CB shall be submitted in duplicate to the Bank. The Bank will then forward a copy of the Certificate and undertaking to the assessing officer concerned.
Requirement for Non-resident Double Taxation Avoidance Agreement (DTAA):-
In order to claim benefit under Double Taxation Avoidance Agreement (DTAA), Tax Residency Certificate (Certificate from another contracting state- mention in DTAA) is required from the payee.
1) Invoice/Agreement under which the payment is to be made.
2) PAN card of the non – resident
3) Tax residency certificate from the non- resident
4) PE (Permanent Establishment) Certificate if PE in India.
5) Payee Bank Details.