{"id":30368,"date":"2025-11-05T00:21:00","date_gmt":"2025-11-04T18:51:00","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30368"},"modified":"2025-11-05T00:28:56","modified_gmt":"2025-11-04T18:58:56","slug":"form-15ca-15cb-credit-card-payment-for-foreign-subscription","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/","title":{"rendered":"Form 15CA\/15CB: Credit Card Payment for Foreign Subscription"},"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-6a02e9579d31d\" 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-6a02e9579d31d\"  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\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Applicability_of_Form_15CA_15CB_on_Credit_Card_Payments_for_Foreign_Subscriptions\" title=\"Applicability of Form 15CA \/ 15CB \u00a0on Credit Card Payments for Foreign Subscriptions\">Applicability of Form 15CA \/ 15CB \u00a0on Credit Card Payments for Foreign Subscriptions<\/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\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Taxability_under_Income_Tax_Act\" title=\"Taxability under Income Tax Act\u00a0\">Taxability under Income Tax Act\u00a0<\/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\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Applicable_TDS_Rate\" title=\"Applicable TDS Rate\">Applicable TDS Rate<\/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\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Scenario_Recap_Credit_Card_Payments_for_Foreign_Subscriptions\" title=\"Scenario Recap: Credit Card Payments for Foreign Subscriptions\">Scenario Recap: Credit Card Payments for Foreign Subscriptions<\/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\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Foreign_Subscription_Payments_via_Credit_Card_%E2%80%93_Compliance_Summary\" title=\"Foreign Subscription Payments via Credit Card \u2013 Compliance Summary\">Foreign Subscription Payments via Credit Card \u2013 Compliance Summary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#In_Case_Individuals_Personal_Use\" title=\"In Case Individuals (Personal Use)\">In Case Individuals (Personal Use)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#For_Non-Individuals_Companies_Firms_LLPs_Trusts_HUFs\" title=\"For Non-Individuals (Companies, Firms, LLPs, Trusts, HUFs)\">For Non-Individuals (Companies, Firms, LLPs, Trusts, HUFs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Rule_37BB_%E2%80%93_Applicability_of_Form_15CA_15CB\" title=\"Rule 37BB \u2013 Applicability of Form 15CA \/ 15CB\">Rule 37BB \u2013 Applicability of Form 15CA \/ 15CB<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#When_Form_15CA15CB_is_required%E2%80%94Rule_37BB_Applicability_of_Form_15CA_15CB\" title=\"When Form 15CA\/15CB is required\u2014Rule 37BB :Applicability of Form 15CA &amp; 15CB\">When Form 15CA\/15CB is required\u2014Rule 37BB :Applicability of Form 15CA &amp; 15CB<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#When_Form_15CA_15CB_are_NOT_Required\" title=\"When Form 15CA \/ 15CB are NOT Required\">When Form 15CA \/ 15CB are NOT Required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Compliance_Summary_for_Credit_Card_Payments_Foreign_Subscriptions\" title=\"Compliance Summary for Credit Card Payments (Foreign Subscriptions) \">Compliance Summary for Credit Card Payments (Foreign Subscriptions) <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Examples_of_Common_Cases_Requiring_15CA15CB\" title=\"Examples of Common Cases Requiring 15CA\/15CB:\">Examples of Common Cases Requiring 15CA\/15CB:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Even_for_credit_card_transactions_compliance_under_Rule_37BB_is_applicable\" title=\"Even for credit card transactions, compliance under Rule 37BB is applicable.\">Even for credit card transactions, compliance under Rule 37BB is applicable.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-credit-card-payment-for-foreign-subscription\/#Final_Takeaway-_Form_15CA15CB_Credit_Card_Payment_for_Foreign_Subscription\" title=\"Final Takeaway- Form 15CA\/15CB: Credit Card Payment for Foreign Subscription\">Final Takeaway- Form 15CA\/15CB: Credit Card Payment for Foreign Subscription<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-20104\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB-.jpg\" alt=\"15ca and 15CB\" width=\"2032\" height=\"1803\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB-.jpg 2032w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB--300x266.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB--1024x909.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB--768x681.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB--1536x1363.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/15ca-and-15CB--800x710.jpg 800w\" sizes=\"(max-width: 2032px) 100vw, 2032px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Applicability_of_Form_15CA_15CB_on_Credit_Card_Payments_for_Foreign_Subscriptions\"><\/span><span style=\"color: #000080;\"><strong>Applicability of Form 15CA \/ 15CB \u00a0on Credit Card Payments for Foreign Subscriptions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>Rule 37BB Chart Applicability of Form 15CA \/ 15CB along with explanation relevant to credit card payments for foreign subscriptions like LinkedIn, Zoom, or other SaaS platforms. <\/strong><strong>\u00a0<\/strong><\/span><\/p>\n<p>An Indian company makes payment for a LinkedIn Premium Subscription or similar foreign online service using a corporate credit card. As per Section 9(1)(vi) of the Income Tax Act, 1961, payments for access to or use of a website, database, or online service are treated as Royalty. Therefore, such payments are taxable in India when made to a non-resident service provider (e.g., LinkedIn Ireland). TDS U\/s \u00a0195 applies at 20% + surcharge + cess (grossed up if borne by the payer). Applicable DTAA provisions may reduce the rate (e.g., 10% under the India\u2013Ireland DTAA if Tax Residency Certificate (TRC) is obtained). Credit Card Payments for Foreign Subscriptions Compliance Requirements:<\/p>\n<ul>\n<li>Even if payment is made via credit card, it still qualifies as a foreign remittance.<\/li>\n<li>Form 15CB (CA Certificate) and Form 15CA (Remitter Declaration) are mandatory before making such payment.<\/li>\n<li>Many banks may not request these forms, but the Income Tax Act mandates them for reporting foreign remittances.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Taxability_under_Income_Tax_Act\"><\/span><span style=\"color: #000080;\"><strong>Taxability under Income Tax Act<\/strong><\/span><strong>\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 113px;\" width=\"1085\">\n<thead>\n<tr>\n<td width=\"171\"><strong>Legal Provision<\/strong><\/td>\n<td width=\"522\"><strong>Implication<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"171\">Section 9(1)(vi)<\/td>\n<td width=\"522\">Payment for use or right to use software, website, or online database is treated as Royalty.<\/td>\n<\/tr>\n<tr>\n<td width=\"171\">Section 195<\/td>\n<td width=\"522\">Any sum payable to a non-resident that is chargeable to tax in India requires TDS deduction at source before making the payment.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Thus, foreign subscription payments are taxable in India as \u201cRoyalty\u201d, and TDS u\/s 195 applies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Applicable_TDS_Rate\"><\/span><span style=\"color: #000080;\"><strong>Applicable TDS Rate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 126px;\" width=\"1090\">\n<thead>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>TDS Rate<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Domestic Law (without DTAA relief)<\/td>\n<td>20% (u\/s 115A) + Surcharge + Health &amp; Education Cess<\/td>\n<\/tr>\n<tr>\n<td>If DTAA applicable<\/td>\n<td>Lower rate as per DTAA, subject to submission of:<br \/>\n\u2013 Tax Residency Certificate (TRC)<br \/>\n\u2013 Form 10F<br \/>\n\u2013 No PE declaration from the foreign entity<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>Example:<\/em> Under India\u2013USA DTAA, royalty may be taxable at 10%, if documentation is in place.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Scenario_Recap_Credit_Card_Payments_for_Foreign_Subscriptions\"><\/span><span style=\"color: #000080;\"><strong>Scenario Recap: Credit Card Payments for Foreign Subscriptions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 440px;\" width=\"1085\">\n<thead>\n<tr>\n<td><strong>Particulars<\/strong><\/td>\n<td><strong>Details<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Nature of Payment<\/td>\n<td>Subscription to LinkedIn Premium, Zoom, ChatGPT, or similar digital services (foreign website\/database access).<\/td>\n<\/tr>\n<tr>\n<td>Recipient<\/td>\n<td>Non-resident company (foreign entity).<\/td>\n<\/tr>\n<tr>\n<td>Character of Income<\/td>\n<td>Considered Royalty U\/s \u00a09(1)(vi) of the Income Tax Act, 1961.<\/td>\n<\/tr>\n<tr>\n<td>Taxability<\/td>\n<td>Taxable in India; TDS applicable U\/s \u00a0195.<br \/>\nIf no lower DTAA rate applies : 20% + applicable surcharge + cess.<\/td>\n<\/tr>\n<tr>\n<td>Mode of Payment<\/td>\n<td>Corporate credit card (still treated as foreign remittance).<\/td>\n<\/tr>\n<tr>\n<td>Compliance Requirement<\/td>\n<td>Form 15CA and 15CB required (even if bank does not insist).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Foreign_Subscription_Payments_via_Credit_Card_%E2%80%93_Compliance_Summary\"><\/span><span style=\"color: #000080;\"><strong>Foreign Subscription Payments via Credit Card \u2013 Compliance Summary<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"In_Case_Individuals_Personal_Use\"><\/span><span style=\"color: #000080;\">In Case Individuals (Personal Use)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td>Aspect<\/td>\n<td>Details<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Applicable Rule<\/td>\n<td>Rule 37BB of the Income Tax Rules, 1962<\/td>\n<\/tr>\n<tr>\n<td>Exemption<\/td>\n<td>Individuals making remittances that do not require prior RBI approval under FEMA are exempt from filing Form 15CA \/ 15CB.<\/td>\n<\/tr>\n<tr>\n<td>Reason<\/td>\n<td>Covered under the Liberalised Remittance Scheme (LRS) of RBI. Online payments for personal subscriptions (LinkedIn, Zoom, ChatGPT, etc.) are processed through international credit cards within the annual LRS limit (USD 250,000).<\/td>\n<\/tr>\n<tr>\n<td>RBI Purpose Codes<\/td>\n<td>Exempt codes include:<br \/>\n\u2022 S0301 \u2013 Business Travel<br \/>\n\u2022 S0305 \u2013 Education<br \/>\n\u2022 S1301 \u2013 Family Maintenance<br \/>\n\u2022 S1107 \u2013 Subscription to Online Services (if personal use, under LRS)<\/td>\n<\/tr>\n<tr>\n<td>TDS Applicability<\/td>\n<td>Not applicable for individuals paying for personal use, as the payment is not in the course of business\/profession.<\/td>\n<\/tr>\n<tr>\n<td>Form 15CA \/ 15CB Requirement<\/td>\n<td>Not Required, provided:<br \/>\n\u2022 Payment is by an individual (not firm\/company)<br \/>\n\u2022 The transaction does not require RBI approval<br \/>\n\u2022 It falls within LRS limits<\/td>\n<\/tr>\n<tr>\n<td>Bank Processing<\/td>\n<td>Banks \/ card networks process these as normal LRS transactions without requiring 15CA\/15CB.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Individual: No Form 15CA \/ 15CB required for personal foreign subscription payments made via credit card by individuals under LRS.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"For_Non-Individuals_Companies_Firms_LLPs_Trusts_HUFs\"><\/span><span style=\"color: #000080;\"><strong>For Non-Individuals (Companies, Firms, LLPs, Trusts, HUFs)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td><strong>Aspect<\/strong><\/td>\n<td><strong>Details<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Applicable Rule<\/td>\n<td>Rule 37BB (read with Section 195 of the Income Tax Act)<\/td>\n<\/tr>\n<tr>\n<td>Nature of Payment<\/td>\n<td>Subscription to foreign websites or SaaS platforms = Royalty \/ Fees for Technical Services (FTS) U\/s \u00a09(1)(vi) or 9(1)(vii).<\/td>\n<\/tr>\n<tr>\n<td>Taxability<\/td>\n<td>Taxable in India; TDS u\/s 195 applies.<\/td>\n<\/tr>\n<tr>\n<td>TDS Rate<\/td>\n<td>20% + surcharge + cess (as per Section 115A)<br \/>\nor lower DTAA rate (if TRC + Form 10F provided).<\/td>\n<\/tr>\n<tr>\n<td>Form 15CA \/ 15CB Applicability<\/td>\n<td>Mandatory, since payment is chargeable to tax and not exempt under Rule 37BB.<\/td>\n<\/tr>\n<tr>\n<td>Compliance Thresholds<\/td>\n<td>\u2022 If \u2264 \u20b95 lakh in FY \u2192 Form 15CA (Part A) only<br \/>\n\u2022 If &gt; \u20b95 lakh in FY \u2192 Form 15CA (Part C) + Form 15CB (CA certificate)<\/td>\n<\/tr>\n<tr>\n<td>Payment Mode<\/td>\n<td>Even if made via corporate credit card, still a foreign remittance under FEMA \u2192 compliance applies.<\/td>\n<\/tr>\n<tr>\n<td>Penalty for Non-filing<\/td>\n<td>\u20b91,00,000 per default U\/s \u00a0271-I.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>\u00a0<\/strong>Non-Individual: For businesses or entities, payments for foreign digital subscriptions are taxable as royalty, hence TDS u\/s 195 and Form 15CA\/15CB filing are mandatory, even for credit card payments.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rule_37BB_%E2%80%93_Applicability_of_Form_15CA_15CB\"><\/span><span style=\"color: #000080;\"><strong>Rule 37BB \u2013 Applicability of Form 15CA \/ 15CB<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Rule 37BB of the Income-tax Rules, 1962, governs reporting of payments made to non-residents (other than salaries) and prescribes the forms to be filed based on nature and amount of remittance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_Form_15CA15CB_is_required%E2%80%94Rule_37BB_Applicability_of_Form_15CA_15CB\"><\/span><span style=\"color: #000080;\"><strong>When Form 15CA\/15CB is required\u2014Rule<\/strong><\/span><span style=\"color: #000080;\"><strong> 37BB :Applicability of Form 15CA &amp; 15CB<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"height: 308px;\" width=\"1081\" data-start=\"1388\" data-end=\"2024\">\n<thead data-start=\"1388\" data-end=\"1451\">\n<tr data-start=\"1388\" data-end=\"1451\">\n<td><strong data-start=\"1390\" data-end=\"1414\">Nature of Remittance<\/strong><\/td>\n<td width=\"337\"><strong data-start=\"1417\" data-end=\"1449\">Form 15CA \/ 15CB Requirement<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr data-start=\"1517\" data-end=\"1649\">\n<td data-start=\"1517\" data-end=\"1590\" data-col-size=\"lg\">In case Remittance taxable in India and amount &gt; INR 5 lakh during the FY<\/td>\n<td width=\"337\" data-col-size=\"md\" data-start=\"1590\" data-end=\"1649\">Form 15CA (Part C) + Form 15CB (CA certificate)<\/td>\n<\/tr>\n<tr data-start=\"1650\" data-end=\"1754\">\n<td data-start=\"1650\" data-end=\"1723\" data-col-size=\"lg\">Remittance taxable in India and amount \u2264 INR 5 lakh during the FY<\/td>\n<td width=\"337\" data-col-size=\"md\" data-start=\"1723\" data-end=\"1754\">Form 15CA (Part A) only and No CA certificate required<\/td>\n<\/tr>\n<tr data-start=\"1755\" data-end=\"1869\">\n<td data-start=\"1755\" data-end=\"1819\" data-col-size=\"lg\">in case Remittance not taxable in India (under DTAA or otherwise)<\/td>\n<td width=\"337\" data-col-size=\"md\" data-start=\"1819\" data-end=\"1869\">Form 15CA (Part D) (no Form 15CB required)<\/td>\n<\/tr>\n<tr data-start=\"1870\" data-end=\"2024\">\n<td data-start=\"1870\" data-end=\"1981\" data-col-size=\"lg\">Remittance covered under Rule 37BB (33 specified items) such as import of goods, travel, education, etc.<\/td>\n<td width=\"337\" data-col-size=\"md\" data-start=\"1981\" data-end=\"2024\">Neither Form 15CA nor 15CB required(Based on AO certificate )<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"When_Form_15CA_15CB_are_NOT_Required\"><\/span><span style=\"color: #000080;\"><strong>When Form 15CA \/ 15CB are <em>NOT Required<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under Rule 37BB(3), reporting is not required for 33 specific categories of remittances (Schedule to Rule 37BB).Examples :Imports of goods, Travel and visa fees, Education and medical expenses abroad, Loan repayments to non-resident banks, Indian embassy payments, Postal remittances\u00a0 Foreign subscription payments (LinkedIn, Zoom, etc.) are <em>not<\/em> exempted, hence Form 15CA &amp; 15CB apply.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Compliance_Summary_for_Credit_Card_Payments_Foreign_Subscriptions\"><\/span><span style=\"color: #000080;\"><strong>Compliance Summary for Credit Card Payments (Foreign Subscriptions) <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 230px;\" width=\"1085\">\n<thead>\n<tr>\n<td><strong>Step<\/strong><\/td>\n<td><strong>Action Required<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1\ufe0f\u20e3<\/td>\n<td>Obtain invoice\/email receipt showing the nature of payment, foreign beneficiary name, and amount.<\/td>\n<\/tr>\n<tr>\n<td>2\ufe0f\u20e3<\/td>\n<td>Determine taxability : most SaaS\/digital subscriptions are royalty under Sec. 9(1)(vi).<\/td>\n<\/tr>\n<tr>\n<td>3\ufe0f\u20e3<\/td>\n<td>Deduct TDS u\/s 195 at applicable rate (generally 20% + surcharge + cess, or DTAA rate if TRC + Form 10F available).<\/td>\n<\/tr>\n<tr>\n<td>4\ufe0f\u20e3<\/td>\n<td>Get Form 15CB from a Chartered Accountant (confirming TDS deduction and taxability).<\/td>\n<\/tr>\n<tr>\n<td>5\ufe0f\u20e3<\/td>\n<td>File Form 15CA (Part C) on the Income Tax Portal before\/after payment.<\/td>\n<\/tr>\n<tr>\n<td>6\ufe0f\u20e3<\/td>\n<td>Maintain records for audit : invoice, Form 15CA acknowledgment, Form 15CB, and payment proof (credit card statement).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Examples_of_Common_Cases_Requiring_15CA15CB\"><\/span><span style=\"color: #000080;\"><strong>Examples of Common Cases Requiring 15CA\/15CB:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 240px;\" width=\"1090\">\n<thead>\n<tr>\n<td><strong>Type of Payment<\/strong><\/td>\n<td><strong>Taxability<\/strong><\/td>\n<td><strong>15CA\/15CB Required<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>LinkedIn \/ Zoom \/ Microsoft \/ Google subscriptions<\/td>\n<td>Royalty \/ FTS<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Payment for foreign consulting \/ technical services<\/td>\n<td>FTS<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Import of goods (purchase of tangible items)<\/td>\n<td>Not taxable<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<td>Advertisement on foreign platforms (e.g., Meta, Google Ads)<\/td>\n<td>Royalty \/ FTS<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Training or conference fee to foreign entity<\/td>\n<td>FTS<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Payment for travel or education abroad (individual)<\/td>\n<td>Not taxable<\/td>\n<td>No<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Even_for_credit_card_transactions_compliance_under_Rule_37BB_is_applicable\"><\/span><span style=\"color: #000080;\"><strong>Even for credit card transactions, compliance under Rule 37BB is applicable.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Foreign subscription payments, even when made via credit card, are considered taxable \u201croyalty\u201d U\/s \u00a09(1)(vi) and are subject to TDS u\/s 195. Reporting through Form 15CA &amp; Form 15CB is mandatory as per Rule 37BB, regardless of whether the bank insists.<\/p>\n<table style=\"height: 92px;\" width=\"1083\">\n<thead>\n<tr>\n<td><strong>Remitter Type<\/strong><\/td>\n<td><strong>Purpose<\/strong><\/td>\n<td><strong>RBI Approval Needed?<\/strong><\/td>\n<td><strong>TDS u\/s 195<\/strong><\/td>\n<td><strong>Form 15CA\/15CB<\/strong><\/td>\n<td><strong>Remarks<\/strong><\/td>\n<\/tr>\n<\/thead>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 101px;\" width=\"1078\">\n<tbody>\n<tr>\n<td>Individual<\/td>\n<td>Personal subscription (LinkedIn, Netflix, etc.)<\/td>\n<td>No<\/td>\n<td>No<\/td>\n<td>\u00a0Not Required<\/td>\n<td>Falls under LRS exemption<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 125px;\" width=\"1083\">\n<tbody>\n<tr>\n<td>Individual<\/td>\n<td>Business\/professional expense<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<td>Required<\/td>\n<td>Treated as business remittance<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 96px;\" width=\"1091\">\n<tbody>\n<tr>\n<td>Company \/ Firm \/ LLP \/ HUF \/ Trust<\/td>\n<td>Any subscription<\/td>\n<td>No<\/td>\n<td>\u00a0Yes<\/td>\n<td>\u00a0Required<\/td>\n<td>Considered taxable \u201croyalty<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Final_Takeaway-_Form_15CA15CB_Credit_Card_Payment_for_Foreign_Subscription\"><\/span><span style=\"color: #000080;\"><strong>Final Takeaway- Form 15CA\/15CB: Credit Card Payment for Foreign Subscription<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Individuals: Exempt from Form 15CA\/15CB for personal foreign subscription payments (within LRS, no RBI approval needed).<\/li>\n<li>Businesses \/ Firms \/ Companies: Treated as taxable foreign remittance (royalty) :\u00a0 TDS u\/s 195 + Form 15CA\/15CB mandatory.<\/li>\n<li>Credit Card Payments: Mode of payment does not alter the taxability or reporting requirement under the law.<\/li>\n<li>Always obtain Form 15CB and file Form 15CA for payments toward foreign online subscriptions or digital services. \u00a0Retain supporting documents \u00a0invoice, TRC (if available), and payment proof \u00a0for record and audit trail., Even though payment is made via credit card, it is treated as foreign remittance because the ultimate beneficiary is outside India.<\/li>\n<li>Non-compliance may attract penalties U\/s \u00a0271-I (INR 1,00,000 per default). The CA certificate (Form 15CB) validates that correct tax has been withheld and reported.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Applicability of Form 15CA \/ 15CB \u00a0on Credit Card Payments for Foreign Subscriptions Rule 37BB Chart Applicability of Form 15CA \/ 15CB along with explanation relevant to credit card payments for foreign subscriptions like LinkedIn, Zoom, or other SaaS platforms. \u00a0 An Indian company makes payment for a LinkedIn Premium Subscription or similar foreign online &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":[10357],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30368"}],"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=30368"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30368\/revisions"}],"predecessor-version":[{"id":30370,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30368\/revisions\/30370"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}