Form 15CA

According to Section 195 of the Income Tax Act of 1961, each individual is accountable for paying the full amount to a non-resident must deduct TDS from such amounts, and if the total is payable to income tax, withholding tax must be deducted, and forms 15CA and 15CB are the necessary declarations. The form 15CA must be submitted by anyone making a remittance (payment) to a non-resident or overseas organization. This form should be filled out and submitted online. After uploading the form 15CA online, a Certification from a Chartered Accountant in form 15CB may be required in exceptional circumstances.

In Form 15CA, the supplying of documentation for payment to a non-resident, who is not a corporation, or to a foreign company has been divided into four components:

  • A : Where the remittance, or the sum of such remittance, somehow doesn't surpass 5 lakh rupees within the financial year (whether taxable or not).
  • B : Where the A.O. has issued an order/certificate under Section 195(2)/195(3)/197 of the Income Tax Act (Whether Nil rate or Lower rate Certificate).
  • C : Whenever a payment, or the sum of payments, exceeds 5 lakh rupees in a fiscal year.
  • D : When the remittance is exempt from taxation under domestic legislation.

Form 15CB

The CA evaluates the remittance for chargeability restrictions under Sections 5 and 9 of the Income Tax Act, as well as regulations of Double Tax Avoidance Agreements, and provides a 15CB. A Chartered Accountant acknowledges the payment information, TDS percentage and subtraction as according to Section 195 of the Income Tax Act, if any DTAA is applicable, and other details concerning the scope and level of the remittance in form 15CB.

Prior to carrying out Part C of Form 15CA, you must first upload Form 15CB. The Acknowledgement Number of e-verified form 15CB should be confirmed to prefill the entries in Part C of form 15CA.

Purpose of Form 15CA & 15CB

The primary goal was to recover taxes at the time of remittance since collecting taxes from Non-Residents at a later stage may be unfeasible. In order to efficiently oversee and trace transactions, it was proposed to implement e-filing of information in certificates.

The exclusion of income tax on the amount paid to non-residents is mandated by Section 195 of the Income Tax Act of 1961. An undertaking (in Form 15CA) and a Chartered Accountants Certificate (in Form 15CB) must be provided by the person delivering the remittance to a non-resident.

Form 15CA & 15CB aren’t necessary for remittances

For remittances that do not require RBI authorization, individuals are not obliged to provide details on Form 15CA and 15CB. Rule 37BB mentions a list of payments that are exempt from complying and reporting through the lodging of Forms 15CA and 15CB.

The following are the types of remittances:

  1. Investment by Indians in foreign branches and totally owned companies.
  2. In venture finance, India invests in other countries.
  3. Imports worth less than Rs. 5,00,000 – For use by ECD offices.
  4. Non-Residents are eligible for loans.
  5. The ongoing maintenance of Indian embassies overseas.
  6. Invoice settlement and payment for imports.
  7. Foreign real estate investment by Indians.
  8. Debt securities are the second type of investment made by Indians overseas.
  9. Indian corporations and allies overseas.
  10. Remittances to India from overseas embassies.
  11. Payment – for the operating costs of Indian shipping enterprises that operate internationally.
  12. Remittance for business travel expenses.
  13. Payment in advance for imports.
  14. Diplomatic missions import.
  15. Intermediary trade.
  16. Expenses incurred by Indian Airlines businesses that operate internationally.
  17. Airline firms that book international flights.
  18. Basic travel quotas applicable (BTQ).
  19. Pilgrimage tour.
  20. Medical care requires travelling.
  21. Remittances for personal presents and charitable contributions
  22. Educational travel (including fees, hostel expenses etc.)
  23. Services of the Post Office.
  24. Remittances to religious and social organisations in other countries.
  25. Indian corporations are building projects all around the world, including importing goods for the job.
  26. Residents make payments for foreign bidding.
  27. The government's contributions to foreign organisations.
  28. Import and export freight insurance.
  29. Non-residents' remittances for family upkeep and savings
  30. Remittances to other governments and religious trusts created by governments for grants and gifts.
  31. Remittance for the purpose of paying or receiving a tax refund.
  32. Payments towards the upkeep of offices in other countries.
  33. Export-related refunds, rebates, or invoice value reductions

Formalities for Forms 15CA and 15CB

Remitter's Information
1. Remitter's Name
2. Remitter's Address
3. Remitter's PAN
4. Remitter's Principal Place of Business
5. Remitter's E-mail Address
6. Remitter's Name; No.
7. No. of Remitters Remitter Status (Firm/Company/Other)
For the submission of Form 15CA, the remitter's digital signature is required.
(As this Form must now be submitted electronically)
Remittee Information
1. Remittee's Name and Status
2. Remittee's Address
3. Remittee's Principal Place of Business
4. Remittee's Country
Remittance Information
1. Remittance Information
2. Remittances are sent to a particular country
3. Currency
4. Remittance Amount in Indian Currency
5. Proposed Remittance Date
6. As agreed upon, the nature of the remittance (Invoice Copy)
Remitter's Bank Details
1. Remitter'S Name and Bank Information
2. Name of Bank Branch
3. BSR Code of Bank
Required Documents for DTAA Benefits
1. The Remittee's (TRC) Tax Residency Certificate
(Tax Registration of the Country in which remittee is registered).
2. Form 10F, duly completed by the remittee's authorised person (Self Declaration).
3. No statement of PE (Permanent Establishment). If the income is business-related, this is required.
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