Recently Government of India/Ministry of Finance/Department of Revenue/Central Board of Direct Taxes published a press release regarding the major changes and amendments in 15CA and 15CB on Taxable Foreign Remittance Changes the Form 15CA and Form 15CB in respect of furnished information regarding payments made to non resident of India under section 195 of the Act.
CBDT has made some changes in Rule 37BB to reduce the compliance burden under Section 195 of the Income-tax Act regarding compliance and furnishing of information of Foreign remittance whether taxable or not. The major changes under the amended Rules are:
- An Individual is not required to furnish information in Form 15CA and 15CB for remittance which requires no RBI approval.
- The list of payments of specified in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.
- A CA certificate in Form No. 15CB is not required to be furnished if payments made to non-residents is not chargeable to tax and the amount of payment during the year does not exceeds Rs. 5 lakh.
- The Information in 15CA and 15CB is required to be furnished only in case of taxable Foreign Remittance.
- Such amendment will be effective from 01.04.2016.
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Download Official Notification :- 15 CA and 15CB Changes and Amendments ,Circular
Update on 7th April 2016 in this Article :-
Details in 15CA and 15CB on Taxable Foreign Remittance Changes
|Applicable part of Form 15CA||To be submitted for the following|
|Part A||If the amount of remittance or aggregate of such remittance made during financial year doesn’t exceed INR 500,000 (Note 1) – (Whether taxable or not)|
|Part B||If the amount of remittance or aggregate of such remittance made during financial year does not exceed INR 500,000 an order/certificate of exemption has been obtained from the Income-tax Officer – (Whether NIL rate or Lower Rate Certificate)|
|Part C||If the amount of remittance or aggregate of such remittance made during financial year exceed INR 500,000 a certificate in Form 15CB is obtained by an accountant|
|Part D||In the remittance is not chargeable to tax (Note 2)|
What is Form 15CA ?
Form 15CA is a Tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. Form 15CA is a Declaration of Remitter
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What is Form 15CB ?
15CB certificate is an alternate channel of obtaining Tax clearance apart from Certificate from Assessing Officer.
15CA 15CB Certificate for Payments abroad
Documents required for getting 15CA and 15CB issued by a Chartered Accountant
1. PAN Card of Applicant (Remitter)
2. Invoice for which payment is to be made.
3. No PE Declaration from Non Resident ( if applicable)
4. Bank Account Details (Cancelled Cheque) from which payment is to be made
5. BSR Code ( Branch code of bank from which payment is to be made.
6. Digital Signature of Remitter.
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Following Information to be required from the client:-
A Details of Remitter:-
1. Name of the Remitter
2. Address of the Remitter
3. PAN of the Remitter
4. Principal Place of Business of the Remitter
5. E-Mail Address and Phone No. Of Remitter
6. Status of the Remitter (Firm/Company/Other)
B Details of Remittee:-
1. Name and Status of the Remittee
2. Address of the Remittee
3. Country of the Remittee (Country to Which Remittance Is Made)
4. Principal Place of the Business of the Remittee
C Details of the Remittance:-
1. Country to Which Remittance Is Made
2. Currency in Which Remittance Is Made
3. Amount of Remittance in Indian Currency
4. Proposed Date of Remittance
5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)
D Bank Details of the Remitter:-
1. Name of Bank of the Remitter
2. Name of Branch of the Bank
3. BSR Code of the Bank
Source : Wikipedia, Government official Notification,CaclubIndia