All About 15CA and 15CB
- Every person liable for making payments to non-residents shall deduct TDS from the payments made to non-residents if such sum is chargeable to Income tax.
- Form15CA is a Declaration given by Remitter and is used as a tool by statutory authorities to collect information in respect of payments that are chargeable to tax in the hands of the recipient non-resident.
- Form15CB – The person making the payment needs to obtain a certificate from a Chartered Accountant in Form 15CB.
- Form15CB is the Tax Determination Certificate where a chartered accountant examines the remittance having regard to changeability provisions u/s 5 and 9 of Income-tax Act along with provisions of Double Tax Avoidance Agreements (DTAA) with the Recipient’s Residence Country.
- The furnishing of information for payment to a non-resident in Form 15CA has been classified into 4 parts –
- In form 15CB, A CA certifies details of the payment, TDS rate, and TDS deduction as per Section 195 of the Income Tax Act, if any DTAA is applicable, and other details of nature and purpose of the remittance.
- Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To prefill the details in Part C of Form 15CA, the Acknowledgement Number of e- verified form 15CB should be verified.
Payment / Remittances that don’t require 15CA & 15CB?
- An individual is not required to furnish the information in Form 15CA and 15CB for remittance which requires no RBI approval.
- List of payments (33 items) mentioned in Rule 37BB which do not require compliances and reporting through the submission of 15CA and 15CB.
| Nature of Payment |
| Indian investment abroad – in equity capital (shares) |
| Indian investment abroad – in debt securities |
| Indian investment abroad- in branches and wholly-owned subsidiaries |
| Indian investment abroad – in subsidiaries and associates |
| Indian investment abroad – in real estate |
| Loans extended to Non-Residents |
| Advance payment against imports |
| Payment towards imports- settlement of the invoice |
| Imports by diplomatic missions |
| Intermediary trade |
| Imports below Rs.5,00,000- (For use by ECD offices) |
| Payment- for operating expenses of Indian shipping companies operating abroad. |
| Operating expenses of Indian Airlines companies operating abroad |
| Booking of passages abroad -Airlines companies |
| Remittance towards business travel. |
| Travel under basic travel quota (BTQ) |
| Travel for pilgrimage |
| Travel for medical treatment |
| Travel for education (including fees, hostel expenses etc.) |
| Postal Services |
| Construction of projects abroad by Indian companies including import of goods at project site |
| Freight insurance – relating to import and export of goods |
| Intermediary trade |
| Payments for maintenance of offices abroad |
| Maintenance of Indian embassies abroad |
| Remittances by foreign embassies in India |
| Remittance by non-residents towards family maintenance and savings |
| Remittance towards personal gifts and donations |
| Remittance towards donations to religious and charitable institutions abroad |
| Remittance towards grants and donations to other Governments and charitable institutions established by the Governments. |
| Contributions or donations by the Government to international institutions |
| Remittance towards payment or refund of taxes. |
| Refunds or rebates or reduction in invoice value on account of exports |
| Payments by residents for international bidding. |
Summary of Section 9
| Sr. No. | Nature of Income | Taxability |
| 1. | Business Income | Taxable if the direct or indirect business connection in India or property or asset or source of income in India or transfer of a capital asset situated in India. |
| 2. | Capital Gain | Taxable if Shares/Property is situated in India or derives its value substantially from assets in India. |
| 3. | Salary Income | If earned in India. |
| 4. | Interest Income | If sourced in India (if the payer is Resident). |
| 5. | Royalties | If incurred for business in India irrespective of the residential status of the payer. |
| 6. | FTS | If incurred for business in India irrespective of the residential status of the payer. |
Applicability of Form 15CA and 15CB –
- What are the consequences involved in the Non-filing of Form 15CA 15CB?
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 shall be liable to penal provisions under section 271I of the Income Tax Act, 1961.
Such penal provision shall be attracted even if the person has furnished inaccurate information. The amount of penalty which the assessing officer may ask the assessee to pay for Non-compliance up to Rs. 1 lakhs.
Documents required for Form 15CA and 15CB:-
| Details of Remitter | Name of the Remitter Address of the Remitter PAN of the Remitter Principal Place of Business E-mail Address and Phone No. of Remitter Status of the Remitter (Firm/ Company/ Other) Digital Signature of Remitter for submission of Form 15CA |
| Details of Remittee | Name and Status of the Remittee Address of the Remittee Principal Place of Business Country of the Remittee |
| Details of Remitter | Country to which the Remittance is made Currency Amount of Remittance in Indian Currency Proposed Date of Remittance Nature of Remittance as per Agreement (Invoice Copy) |
| Bank Details of Remitter | Name and Bank of Remitter Name of Branch of the Bank BSR Code of the Bank |
| Documents required for DTAA Benefit | Tax Residency Certificate (TRC) from the Remittee Form 10F duly filled by the Authorized person of the remittee (Self Declaration). No PE (Permanent Establishment) declaration from the remittee |
