15CA, CB CERTIFICATION
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. It may be required to be accompanied by a Certificate from a Chartered Accountant in Form 15CB hence any Person making the Payment to non- resident shall have to comply Form 15 CA rule and may obtain (depending upon transaction limit) a certificate from a Chartered Accountant in Form 15CB.
AVS & Associates can help you identify the transactions which are covered under mandatory filings and file Form 15 CA and/or For 15 CB after through checking and analyzing Indian Income Tax Act’ 1961 and DTAA with the respective country.
Frequently Asked Questions
Form 15CA is a remitter declaration which is used as a method to gather information on payments that are taxable in the hands of non-resident recipients. The form 15CA is therefore required to be registered with the tax department online.
- The Remitter shall electronically upload Form 15CA.
- The Information furnished in the Form 15CA is to be filed using the information contained in Form 15CB.
- 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.
Section 195 of the Income Tax Act , 1961, requires the deduction of Income Tax from Non-Resident payments. The person making the transition to non-resident must furnish an undertaking (in 15CA form) followed by a Certificate of Chartered Accountants in Form 15CB
Yeah, Form 15CA can be revoked within 7 days of the date of submission. The path to revoke the form submitted will be available on the Assessee website concerned.
If an Assessee who is expected to file Form 15CA 15CB does not furnish the same before making a remittance to a non-resident, he is liable for penalties under section 271I of the 1961 Income Tax Act. Such penal requirement shall be attracted even if the individual has given the information inaccurately. Rs.1lakhs is the amount of penalty that the Assessing officer may require the Assessee to pay for Non-compliance.
For remittance, a person is not required to provide the information in Form 15CA and 15CB that does not require RBI approval.
1 Indian investment abroad – in equity capital (shares)
2 Indian investment abroad – in debt securities
3 Indian investment abroad- in branches and wholly-owned subsidiaries
4 Indian investment abroad – in subsidiaries and associates
5 Indian investment abroad – in real estate
6 Loans extended to Non-Residents
7 Advance payment against imports
8 Payment towards imports- settlement of the invoice
9 Imports by diplomatic missions
10 Intermediary trade
11 Imports below Rs.5,00,000- (For use by ECD offices)
12 Payment- for operating expenses of Indian shipping companies operating abroad.
13 Operating expenses of Indian Airlines companies operating abroad
14 Booking of passages abroad -Airlines companies
15 Remittance for business travel.
16 Travel under basic travel quota (BTQ)
17 Travel for pilgrimage
18 Travel for medical treatment
19 Travel for education (including fees, hostel expenses etc.)
20 Postal Services
21 Construction of projects abroad by Indian companies including import of goods at the project site
22 Freight insurance – relating to import and export of goods
23 Payments for maintenance of offices abroad
24 Maintenance of Indian embassies abroad
25 Remittances by foreign embassies in India
26 Remittance by non-residents towards family maintenance and savings
27 Remittance towards personal gifts and donations
28 Remittance towards donations to religious and charitable institutions abroad
29 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30 Contributions or donations by the Government to international institutions
31 Remittance towards payment or refund of taxes.
32 Refunds or rebates or reduction in invoice value on account of exports
33 Payments by residents for international bidding.
If an Assessee who is required to file Form 15CA 15CB fails to furnish the same before making remittance to a non resident, then he has shall be liable to penalty provisions under section 271I of the Income tax Act , 1961. ... Yeah, it is possible to withdraw Form 15CA within 7 days of the date of submission.
In Form 15CB, we are expected to provide information such as the remitter's particulars, the remitter's particulars, the essence of the remittance, including royalty, wages, commission etc. In the case of DTAA (Double Taxation Avoidance Agreement), the remitter 's tax citizenship certificate and bank information of the remitter
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