Basic Provision of Form 15CB & 15CA

Basic Provision of Form 15CB & 15CA

What is Form 15CB

There are some provisions to make payments outside India, one of this compliance is the submission of Form 15CA and 15CB compliance. Rule 37BB provides the manner of supplying information in form 15CB and making a declaration in form 15CA.

What form-15CA?

In 15CA, all the information concerning payments made to non-residents is given, making it a tool for the collection of data on international remittances. In general, this form is a statement used by the sender to gather information on payments due.

• Therefore, Form 15CA helps the country’s Income tax department keep track of international remittances and their taxability.
• Form 15CA will NOT have to be equipped for remittance by a person who does not need RBI approval.

Applicability of Form 15CA

Form 15CA is a declaration statement of any person who is planning to make a foreign remittance:

• To a non-resident or a foreign company (regardless of whether the remittance is taxable)
• Remitter who can be a resident/non-resident/domestic/foreign company
• Where income accrues/ arises/ acquired or considered to accrue/ arise/ received in India. (Section 5 of the Income Tax Act)

Non- Applicability of Form 15CA

Non-requirement of Form 15 CA

• When the Foreign remitter allows Foreign remittance in compliance with the list of payments stated in the Income Tax Rules of Rule 37BB.(Refer: Rules of Income Tax)
• Not applicable by Section 5 of the Foreign Exchange Management Act, 1999 to an individual who does not need RBI approval.

What is Form-15CB?

This is the kind of certificate that is required only if the remittance is not taxable. It is a channel for getting tax clearance/approval. In general, this form is a declaration used by the remitter to gather information on payments due.

Applicability Form 15CB certificate

 

Form 15CB certificate is required from Chartered Accountant when the foreign remittance is made in the following case

• Non-resident or Foreign companies are Taxable,
• Payment above Rs. 5 lakhs; &
• Where the order/certificate has not been received from the Assessing Officer (AO).

Form 15CB is a form that a Chartered Accountant is required to sign. This certificate is regarding the rate and the correct type of tax paid by Assess. some information Form 15CB is requested at the time of submission of Form 15CA.

It appears at first glance that Form 15CA is not necessary to be completed if the remittance or payment to a non-resident Indian is not taxable.

According to Rule 37BB of the Income Tax (14th Amendment) Rule, 2013, There is no reporting of Form 15CA & Form 15CB in the case of international remittances of the following nature since October 2013.

List of payments where Form 15CA / 15CB is not required

Purpose code as per RBI	Nature of Payment
S0001	Indian investment abroad -in equity capital (shares)
S0002	Indian investment abroad -in debt securities
S0003	Indian investment abroad -in branches and wholly-owned subsidiaries
S0004	Indian investment abroad -in subsidiaries and associates
S0005	Indian investment abroad -in real estate
S0011	Loans extended to Non-Residents
S0202	Payment- for operating expenses of Indian shipping companies operating abroad.
S0208	Operating expenses of Indian Airlines companies operating abroad
S0212	Booking of passages abroad -Airlines companies
S0301	Remittance towards business travel.
S0302	Travel under basic travel quota (BTQ)
S0303	Travel for pilgrimage
S0304	Travel for medical treatment
S0305	Travel for education (including fees, hostel expenses, etc.)
S0401	Postal services
S0501	Construction of projects abroad by Indian companies including import of goods at the project site
S0602	Freight insurance – relating to import and export of goods
S1011	Payments for maintenance of offices abroad
S1201	Maintenance of Indian embassies abroad
S1 202	Remittances by foreign embassies in India
S1301	Remittance by non-residents towards family maintenance and-savings
S1302	Remittance towards personal gifts and donations
S1303	Remittance towards donations to religious and charitable institutions abroad
S1304	Remittance towards grants and donations to other governments and charitable institutions established by the Governments.
S1305	Contributions or donations by the government to international institutions
S1306	Remittance towards payment or refund of taxes.
S1501	Refunds or rebates or reduction in invoice value on account of exports
S1503	Payments by residents for international bidding”.

 

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