{"id":29337,"date":"2025-05-21T14:31:17","date_gmt":"2025-05-21T09:01:17","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29337"},"modified":"2025-11-05T00:41:41","modified_gmt":"2025-11-04T19:11:41","slug":"15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank\/","title":{"rendered":"15CA\/CB Required If Payment to foreign Branch of Indian bank"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2631d4c6f8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2631d4c6f8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank\/#Whether_15CACB_compliance_required_in_case_Payment_to_foreign_bank_branch_of_an_Indian_banka_case_study\" title=\"Whether 15CA\/CB compliance required in case Payment to foreign bank branch of an Indian banka case study\">Whether 15CA\/CB compliance required in case Payment to foreign bank branch of an Indian banka case study<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank\/#Legal_Position-_payment_of_interest_on_the_buyers_credit_to_the_foreign_branch_of_an_Indian_bank\" title=\"Legal Position- payment of interest on the buyer&#8217;s credit to the foreign branch of an Indian bank\">Legal Position- payment of interest on the buyer&#8217;s credit to the foreign branch of an Indian bank<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank\/#Payments_to_Foreign_Branches_of_Indian_Banks_under_TDS_Form_15CA15CB_compliance\" title=\"Payments to Foreign Branches of Indian Banks\u00a0 under TDS &amp; Form 15CA\/15CB compliance:\u00a0\">Payments to Foreign Branches of Indian Banks\u00a0 under TDS &amp; Form 15CA\/15CB compliance:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank\/#Form_15CA_15CB_Compliance_Foreign_Branch_of_an_Indian_Bank\" title=\"Form 15CA \/ 15CB Compliance :\u00a0Foreign Branch of an Indian Bank\">Form 15CA \/ 15CB Compliance :\u00a0Foreign Branch of an Indian Bank<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/15ca-cb-required-if-payment-to-foreign-branch-of-indian-bank\/#Conclusion%E2%80%94Summary_Table\" title=\"Conclusion\u2014Summary\u00a0Table\">Conclusion\u2014Summary\u00a0Table<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13349\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/04\/STEPS-FOR-FILING-FORM-15CB.-1.jpg\" alt=\"www.carajput.com: Form15CA &amp;15CB\" width=\"1096\" height=\"658\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whether_15CACB_compliance_required_in_case_Payment_to_foreign_bank_branch_of_an_Indian_banka_case_study\"><\/span><span style=\"color: #000080;\"><strong>Whether 15CA\/CB compliance required in case Payment to foreign bank branch of an Indian banka case study<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>Common scenario involving payment of interest on the buyer&#8217;s credit to the foreign branch of an Indian bank and whether Form 15CA\/CB compliance is necessary.<\/strong><\/span><\/p>\n<p>Query: Ind Co. imported goods from entity in Hongkong. &amp; Ind Co. obtained funding (i.e Trade\/ buyer\u2019s credit against imports) from \u201cSingapore Branch of ABC Bank India (\u2018ABC Singapore\u2019). Ind Co. is making payment of interest on buyer\u2019s credit to ABC Singapore<\/p>\n<p><span style=\"color: #000080;\"><strong>Case Summary<\/strong><\/span><\/p>\n<ul>\n<li>Importer: Indian Company (Ind Co.)<\/li>\n<li>Creditor: Singapore Branch of ABC Bank India (ABC Singapore)<\/li>\n<li>Transaction: Payment of interest on buyer\u2019s credit facility<\/li>\n<li>Query: Is Form 15CA\/CB filing required u\/s 195(6) read with Rule 37BB?<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\">Whether 15CA\/CB compliance is required for the payment made by Ind Co. to ABC Singapore?<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Legal_Position-_payment_of_interest_on_the_buyers_credit_to_the_foreign_branch_of_an_Indian_bank\"><\/span><span style=\"color: #000080;\"><strong>Legal Position- payment of interest on the buyer&#8217;s credit to the foreign branch of an Indian bank<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Payments_to_Foreign_Branches_of_Indian_Banks_under_TDS_Form_15CA15CB_compliance\"><\/span><span style=\"color: #000080;\"><strong>Payments to Foreign Branches of Indian Banks\u00a0 under TDS &amp; Form 15CA\/15CB compliance:\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An Indian entity makes a payment (e.g., interest) to the Abu Dhabi branch of State Bank of India (SBI). following Taxability situation are mention here under\u00a0 Although the branch is located outside India, SBI is an Indian resident company under the Income Tax Act, 1961. A foreign branch of an Indian bank is not a separate legal or taxable entity \u2014 it is simply an extension of the Indian head office. Therefore, payment to SBI\u2019s foreign branch is effectively payment to a resident.\u00a0Section 195 (TDS on payments to non-residents) does not apply since the payee (SBI) is a resident.<\/p>\n<h3 data-start=\"800\" data-end=\"838\"><span class=\"ez-toc-section\" id=\"Form_15CA_15CB_Compliance_Foreign_Branch_of_an_Indian_Bank\"><\/span><span style=\"color: #000080;\"><strong data-start=\"807\" data-end=\"838\">Form 15CA \/ 15CB Compliance :\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>Foreign Branch of an Indian Bank<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"800\" data-end=\"838\">Rule 37BB<span style=\"font-size: 16px;\"> of the Income Tax Rules applies only when a <\/span>remittance is made to a non-resident<span style=\"font-size: 16px;\"> or to a <\/span>foreign company<span style=\"font-size: 16px;\">. <\/span><span style=\"font-size: 16px;\">Since the remittance is <\/span>to a resident entity (SBI)<span style=\"font-size: 16px;\">, <\/span>Form 15CA and 15CB are not required<span style=\"font-size: 16px;\">.<\/span><\/p>\n<ul>\n<li>As per RBI guidelines, a foreign branch of an Indian bank is not a separate legal person \u2014 it is considered an extension of the Indian entity, hence resident in India under Indian tax laws.<\/li>\n<li>Therefore, payments made to such a foreign branch are considered payments to a resident.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Section 195(6) and Rule 37BB<\/strong><\/span><\/p>\n<ul>\n<li>Compliance u\/s 195 applies only to remittances to non-residents.<\/li>\n<li>Hence, if the payee is a resident, no Form 15CA\/CB is required.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Practical Reality<\/strong><\/span><\/p>\n<ul>\n<li>Despite the legal position, banks often insist on a CA certificate or Form 15CB, for internal compliance and audit purposes, especially where:\n<ul>\n<li>Payment is being remitted abroad;<\/li>\n<li>Interest or other charges are involved;<\/li>\n<li>There is a concern about withholding tax obligations u\/s 195 if the branch is mistakenly treated as non-resident.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Our Recommendation<\/strong><\/span><\/p>\n<ol>\n<li>No 15CA\/CB is required, since the Singapore Branch is an extension of a resident bank.\u00a0Practically, prepare a CA certificate or a declaration stating:\n<ul>\n<li>That ABC Singapore is a branch of a resident bank (ABC Bank India);<\/li>\n<li>Payment is being made to a resident;<\/li>\n<li>Therefore, Section 195 does not apply.<\/li>\n<\/ul>\n<\/li>\n<li>If the bank still insists, you may optionally file Form 15CA, Part D (for payments not chargeable to tax in India), although this is a conservative approach.<\/li>\n<\/ol>\n<p><span style=\"color: #000080;\"><strong>Sample Language for CA Declaration (Optional)<\/strong><\/span><\/p>\n<p>\u201cThis is to certify that the interest payment being made by M\/s [Ind Co.] to ABC Bank, Singapore Branch, pertains to a loan facility availed from a foreign branch of ABC Bank India, a resident bank. Since the payment is made to a branch of a resident entity, the remittance is not chargeable to tax in India and is not subject to the provisions of section 195 of the Income Tax Act, 1961.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion%E2%80%94Summary_Table\"><\/span><span style=\"color: #000080;\"><strong>Conclusion\u2014Summary<\/strong><strong data-start=\"1082\" data-end=\"1099\">\u00a0Table<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"_tableContainer_1rjym_1\">\n<div class=\"group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 290px;\" width=\"1058\" data-start=\"1101\" data-end=\"1448\">\n<thead data-start=\"1101\" data-end=\"1126\">\n<tr data-start=\"1101\" data-end=\"1126\">\n<th data-start=\"1101\" data-end=\"1115\" data-col-size=\"sm\"><span style=\"color: #000080;\">Particulars<\/span><\/th>\n<th data-start=\"1115\" data-end=\"1126\" data-col-size=\"md\"><span style=\"color: #000080;\">Details<\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"1155\" data-end=\"1448\">\n<tr data-start=\"1155\" data-end=\"1194\">\n<td data-start=\"1155\" data-end=\"1167\" data-col-size=\"sm\"><strong data-start=\"1157\" data-end=\"1166\">Payee<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1167\" data-end=\"1194\">Abu Dhabi Branch of SBI<\/td>\n<\/tr>\n<tr data-start=\"1195\" data-end=\"1239\">\n<td data-start=\"1195\" data-end=\"1215\" data-col-size=\"sm\"><strong data-start=\"1197\" data-end=\"1214\">Tax Residency<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1215\" data-end=\"1239\">Resident (SBI India)<\/td>\n<\/tr>\n<tr data-start=\"1240\" data-end=\"1298\">\n<td data-start=\"1240\" data-end=\"1265\" data-col-size=\"sm\"><strong data-start=\"1242\" data-end=\"1264\">Applicable Section<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1265\" data-end=\"1298\">Not covered under Section 195<\/td>\n<\/tr>\n<tr data-start=\"1299\" data-end=\"1339\">\n<td data-start=\"1299\" data-end=\"1321\" data-col-size=\"sm\"><strong data-start=\"1301\" data-end=\"1320\">TDS Requirement<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1321\" data-end=\"1339\">Not applicable<\/td>\n<\/tr>\n<tr data-start=\"1340\" data-end=\"1379\">\n<td data-start=\"1340\" data-end=\"1363\" data-col-size=\"sm\"><strong data-start=\"1342\" data-end=\"1362\">Form 15CA \/ 15CB<\/strong><\/td>\n<td data-start=\"1363\" data-end=\"1379\" data-col-size=\"md\">Not required<\/td>\n<\/tr>\n<tr data-start=\"1380\" data-end=\"1448\">\n<td data-start=\"1380\" data-end=\"1393\" data-col-size=\"sm\"><strong data-start=\"1382\" data-end=\"1392\">Reason<\/strong><\/td>\n<td data-col-size=\"md\" data-start=\"1393\" data-end=\"1448\">Payment to a resident entity, not to a non-resident<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p>Where ABC Singapore is regarded to be a branch of ABC India, payment made to ABC Singapore will be treated at par with payments being made to an Indian Bank (resident in India). A foreign branch of an Indian bank is regarded to be an extension of the Indian bank itself and not a separate foreign entity. When payment is being made to a resident, no compliance u\/s 195(6) is required. However, Bank insist for certificate<\/p>\n<p>Form 15CA\/CB is not required in this case as the payment is being made to a resident bank\u2019s foreign branch. However, due to conservative banking practice, be ready to furnish a CA declaration or file Part D of Form 15CA if insisted by the bank.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether 15CA\/CB compliance required in case Payment to foreign bank branch of an Indian banka case study Common scenario involving payment of interest on the buyer&#8217;s credit to the foreign branch of an Indian bank and whether Form 15CA\/CB compliance is necessary. Query: Ind Co. imported goods from entity in Hongkong. &amp; Ind Co. obtained &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[159],"tags":[10285],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29337"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29337"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29337\/revisions"}],"predecessor-version":[{"id":30374,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29337\/revisions\/30374"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}