A brief introduction about Form 15CA and 15CB: Income Tax Filing Documents Form 15CA and 15CB is used / beneficial for the Income Tax Department to keep track of the foreign remittances and determine their tax liability. Form 15CA is “Declaration of Remitter� as it lists all information about payments made to a non-resident. Institutions like banks now have been directed to obtain Form 15CA and 15CB before making any remittance. Form 15CB, also known as Tax Determination Certificate is issued by a Chartered Accountant. Its perusal ensures that all changeability provisions and Double Tax Avoidance are examined well. This information is very useful at the time of filing taxes also in order to double check if correct taxes have been paid. Form 15CB is not required where Part A of Form 15CA is to be filled in, in instances of small payments.
Image Source: wealth18 As per Amended Rules, a person need not furnish information about all foreign payment as Income Tax Department has added 28 types of Payment where no information is required whatsoever. If your payment falls under the types of Payments mentioned below you are not required to submit Form 15CA or 15CB 1.
Investment made by individual in equity share capital in foreign countries
2.
Investment made by individual in debt securities in foreign countries
3.
Investment made by individual in branches and wholly owned subsidiaries in foreign
countries
4.
Investment made by individual in subsidiaries and associates in foreign countries
5.
Investment made by individual in real estate in foreign countries
6.
Loans provided to Non-Residents
7.
Operating expenses incurred by Indian Shipping companies operating on foreign shores
8.
Payment of operating expenses of Indian Airlines companies operating on foreign land.
9.
Booking of passages abroad -Airlines companies
10. Expenses incurred for business travel. 11. Travel expenses incurred under BTQ (Basic Travel Quota) 12. Pilgrimage travel expenses 13. Expenses incurred on travelling for medical treatment 14. Expenses incurred on Education 15. Expenses incurred related to Postal services 16. Expenses for constructing projects including import of goods and raw materials by by
Indian companies at construction site 17. Expenses incurred for Freight insurance for import/export of goods. 18. Maintenance expenses incurred for foreign offices. 19. Maintenance expenses incurred of Indian embassies 20. Any payment made by other foreign embassies 21. Any payment made by non-residents for family maintenance or savings 22. Remittances in way of gifts or donations 23. Remittance as donations to foreign charitable or religious institutions 24. Remittance as grants or donations to foreign Governments or charitable institutions
founded by such Governments. 25. Government Donations or Contributions to international institutions 26. Payment or refund of taxes. 27. Refunds or rebates or reduction in invoice value on account of exports 28. Remittance by residents of India for any international auction or bidding.
No Form 15CA and 15CB are required to be submitted for the above mentioned 28 nature of foreign remittances. Any payment which falls outside the above mentioned types of payments are required to submit Form 15CA and 15CB. If you are submitting Form 15CA & 15CB, it is better to have a look at the Amended Rule 37BB which states “Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish the following, namely: 1.
the information in Part A of Form No.15CA, if the amount of payment does not exceed
fifty thousand rupees and the aggregate of such payments made during the financial year does not exceed two lakh fifty thousand rupees;
2.
the information in Part B of Form No.15CA for payments other than the payments
referred in clause (i)” Now, we know whether you are required or not to submit the form. If you are required to submit the form, you need the following details. Remitter Details
Remitter’s Name
Remitter’s Address
Remitter’s PAN details
Remitter’s Principal Place of Business
Remitter’s E-Mail Address and Phone No.
Remitter’s Status (Firm/Company/Other)
Remittee Details
Remittee’s Name and Status
Remittee’s Address
Remittee’s Country (To Which Country the Remittance Is Made)
Remittee’s Principal Place of the Business
Remittance Details
To which Country Remittance Is Made
In which Currency Remittance Is Made
Total amount of Remittance in Indian Currency
Proposed Date of Remittance
Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)
Bank Details of the Remitter
Remitter’s Bank Name along which Branch Details
BSR Code of the Bank
Others
Father’s Name of the Signing Person
Designation Of The Signing Person
Duly Filled Form 10F By Remittee’s Authorised Person
Tax Residency Certificate From The Remittee (Tax Registration Of The Country In
Which Remittee Is Registered)
Certificate to prove no permanent establishment is owned by Remittee in India. This is
mandatory if the income is a business income and is not chargeable to tax as per DTAA if there is no permanent establishment in India.