Process For 15CA And 15CB

When payment is being made to non resident tax is required to be deducted under section 195 of the Income Tax Act 1961.Below i have described important Process for 15CA and 15CB and its compliance method.Person making foreign remittance for him most important thing is 15CA and 15CB which appears difficult and tiresome work as bank/Authorised dealers checks that whether tax is paid or not on said remittance as it is not possible to collect tax from foreigner after remittance is made hence before remittance it is ensured.Most of the users are not aware of the current legal provisions and its compliance.

Process for 15CA and 15CB

Below are the important factors for 15CA and 15CB:

This can be divided based on amount of payment as follows:
- For payment chargeable to tax below Rs.5Lacs:
  - Only part A of 15CA is required.
- For payment chargeable to tax above Rs.5Lacs:
  - Part B and C of 15CA is required and 15CB from chartered accountant is required.
Both forms are required to file online with Income Tax department.
When payment is not chargeable to Income Tax part D of 15CA is required.
For quarterly statement of remittances by authorized dealers,they are required to submit form 15CC .
Following are the scenarios where 15CA CB will not be required:

RBI purpose code	Payment Nature
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
S0101	Advance payment against imports
S0102	Payment towards imports – settlement of invoice
S0103	Imports by diplomatic missions
S0104	Intermediary trade
S0190	Imports below Rs.5,00,000 – (For use by ECD offices)
SO202	Payment for operating expenses of Indian shipping companies operating abroad
SO208	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 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
S1202	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.

Process for 15CA and 15CB

Following are other situations where 15 CB will not be required:
- If lower or no deduction certificate or order is taken under section 195(3),197 or 195(2) of the Income Tax Act 1961.
- Aggregate remittances during the financial year does not exceed Rs.five lacs or when remittance is not chargeable to tax.

Checklist for 15 CA CB:
- Remitter details
1. Name & Legal status
2. PAN
3. Address & Principal Place of business
4. Phone number and email address
- Remittee Details
1. Name and Legal status
2. Address and principal place of business
- Remittance details
1. Country and its currency
2. Amount of remittance in INR
3. Nature and proposed date
- Remitter bank details
1. Name,branch name and BSR CODE
- Miscellaneous
1. Designation and father’s name of signing person
- Remittee documents
1. FORM 10 F
2. Tax Residency Certficate
3. Remittee is required to produce certificate for not having any permanent establishment in India.
Process to file 15 CA CB is as follows:
- Downloading form from downloads tab of Income Tax website from forms other than ITR.
- Creating XML from JAVA or excel utility.
- Logging to E filing portal of Income Tax website and uploading XML in the E file section.
- After filing required details and on clicking on submit success notification along with email will be sent to E mail id registered with Income Tax.
- Note:DSC is must for filing 15CB.
- Note form 15CA can be withdrawn within 7 days of filing.

Owner of this information can be reached at K M GATECHA & CO LLP.

Important note: This does not lead to legal advice or legal opinion and is personal view and for information purpose only. It is prepared on the basis of facts available and applicable law.It is suggested to go through applicable provisions of law,latest regulations,judicial announcements, circulars, notifications and clarifications etc before taking any action based on above content.You agree here by that for any action taken on basis of above information in any manner writer or K M GATECHA & CO LLP is not responsible or liable for any omission,reliability,accuracy,completeness,errors or authenticity.This work by professional is just for knowledge purpose and does not constitute any kind of solicitation of work or advertisement.