Form 15CA & 15CB

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

Wef 1st Apr 2016, the provisions applicable to Income-Tax Rule 37BB read with Sec 195 is amended i.e. issuance of Form 15CB & CA. Following are the key points covered therein.
The furnishing of information for payment to a non-resident, not being a company, or to a foreign company in Form 15CA has been classified into 4 parts- Part A, Part B, Part C and Part D, wherein:
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)
Note 1- Earlier threshold was above 50,000 per payment  or the aggregate remittances exceeded INR 250,000 during the financial year .
Note 2 – No information is required to be furnished if remittance is not chargeable to tax if;
(1) the remittance is made by an individual and it does not require prior approval of RBI as per FEMA provisions and
(2) the remittance is of the nature as mentioned in “SPECIFIED LIST” – in page 2 & 3 listed in the attachment. Further the list of payments of specified nature mentioned  in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33.
Process related to Form 15CB & CA has been completely revamped by the IT Dept and now IT Dept expecting the certifying CA to certify the Form 15CB via online, similar to an Audit Report.
The Process related to Form 15CB & CA explained in nutshell;

Form 15CB:

1. The Remitter / Company has to ‘Add CA’ in eFiling Portal, whoever is Signing the Form 15CB
2. The ‘Form 15CB’ xml file has to be generated with the help of a ‘Utility’, Signing manual / paper form is discontinued
3. So added CA shall upload the Form 15CB xml file with one’s own eFiling Login
4. The Remitter / Company has to approve the same
5. Once approved, the Remitter will allotted with an ‘Acknowledgement Number’, which has to be Keyed-in when prompted, while filing ‘Form 15CA’

Form 15CA:

1. The Remitter / Company has to Login to Company’s ‘eFiling’ portal
2. Using ‘DSC Management Utility’ the Remitter / Company need to create a ‘Signature xml file’ to upload it while filing Form 15CA
3. Under ‘eFile’ tab, select ‘Prepare and submit online Forms (Other than ITR)’ and select 15CA
4. Follow the instructions and steps as seen onscreen to file the Form 15CA online

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