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
Process for 15CA and 15CB

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.

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