Revised Forms (15CA, 15CB) and Rules for payment to Non Resident

To Avail Buyer’s / Supplier’s Credit: E: sanjaymandavia@gmail.com, M: +919825560186

tax

Related Article: Country-wise Double Taxation Summary Chart

In earlier article about Withholding Tax (WHT), we have discussed about the process and applicability of Form 15CA and 15CB. On 5th August, 2013 CBDT revised the guidelines on Form 15CA and Form 15CB and further amended on 02nd September 2013. Below article gives a summary of changes made.

  • Revised Forms and Amendments shall come into force on the 1st October, 2013.
  • Applicable to : Any payment including any interest or salary or any other sum chargeable to tax, to non-resident, not being a company, or to a foreign company

Changes in New Form 15CA

Part A of Form 15 CA (Form 15CB not required)
Particulars Changes
Who Shall Fill It To be filled up if the remittance to non- resident or to a foreign company does not exceed Rs. 50000 per transaction and aggregate of such payments made during the financial year does not exceed Rs. 2,50,000
What information has to be filled 1. Particulars of Remitter, Remittee, Remittance made and TDS
2. Mandatory to furnish PAN of Remitter, if tax is deducted then TAN of the Remitter also needs to be provided
3. Form prescribes mandatory application of provisions of Section 206AA, if remittance is chargeable to tax and PAN of remittee is not available.
4. E-mail and Phone Number of remittee to be furnished, if available
Part B of Form 15 CA ***(Form 15CB required)
Who Shall Fill It To be filled up for remittances other those specified in Part A (If the Remittance is chargeable to tax and exceed Rs. 50000 per transaction and aggregate of such payments made during the financial year exceeds Rs. 2,50,000)
What information has to be filled 1. Forms prescribe mandatory application of provisions of Section 206AA, if PAN of remittee is not available;
2. Other Details
Secion A:
Details of Remitter, Remittee and Accountant to be specified in this section
Secion B:
Particulars of Remittance and TDS (as per certificate of accountant), namely:
a. Remittance details
b. Taxability under the Income Tax Act
c. Taxability under the relevant DTAA. Details of TRC (Tax Residency Certificate)
d. TDS details

*** Part B of Form 15CA is to be filled after obtaining either of the below

  • a certificate in form no. 15cb from an accountant (chartered accountant) or
  • a certificate from the Assessing Officer (AO) under Sec 197 or
  • an order from Assessing Officer under sub-sec (2) or sub-section (3) of sec 195

Changes in New Form 15CB(PDF) (Excel Format of  Revised Form 15CB)

Additional details to be provided in new Form 15CB are

  • Taxability under the Income-tax Act without considering the relief of the DTAA
  • If income is chargeable to tax in India and relief is claimed under the DTAA, whether TRC has been obtained from the recipient?
  • If remittance is on account of capital gains details of amount of short-term, long-term capital gains and the basis of arriving at the taxable income.

Revised Process for filing Form 15CA (atleast till the time NSDL site is update)

1. Login on the e-filing portal at the following link  – https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html

2.  Visit the link – e-file → Prepare and Submit Online Form(Other than ITR) → Select Form 15CA and Assessment year.

Form 15CA & Form 15CB not required for Import Payments

Few banks have started asking for Form 15CA and Form 15CB sighting RBI circular of 2007 “Remittances to non-residents – Deduction of tax at source

CBDT Circular clearly 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 provision of the Act, shall furnish the following information” (in form 15CA and Form 15CB)

Payments made against Import Purchases constitutes Business Income of the Overseas Supplier and is taxable in India only if it is attributable to a Business connection/Permanent Establishment in India as per Section 9(1)(i) and respective Double Tax Avoidance Agreement. Thus, in absence of any income chargeable to tax in India there cannot be any application of Section 195 & form 15CA and Form 15CB is not applicable for remittances towards import payments.

Few banks are taking a declaration from Importers in their forwarding letter that given Import payment amount is non chargeable to tax in India and carrying out transaction without Form 15CA and Form 15CB.

Specified List :  

Explanation 2: For the removal of doubts, it is hereby clarified that for payments of the nature specified in column (3) of the specified list below, no information is required to be furnished under sub-rule (1).

Thus no form 15CA and Form 15CB in applicable for below cases.

Sl.No. Purpose code as per RBI Nature of payment
(1) (2) (3)
1 S0001 Indian investment abroad -in equity capital (shares)
2 S0002 Indian investment abroad -in debt securities
3 S0003 Indian investment abroad -in branches and wholly owned subsidiaries
4 S0004 Indian investment abroad -in subsidiaries and associates
5 S0005 Indian investment abroad -in real estate
6 S0011 Loans extended to Non-Residents
7 S0202 Payment- for operating expenses of Indian shipping companies operating abroad.
8 S0208 Operating expenses of Indian Airlines companies operating abroad
9 S0212 Booking of passages abroad -Airlines companies
10 S0301 Remittance towards business travel.
11 S0302 Travel under basic travel quota (BTQ)
12 S0303 Travel for pilgrimage
13 S0304 Travel for medical treatment
14 S0305 Travel for education (including fees, hostel expenses etc.)
15 S0401 Postal services
16 S0501 Construction of projects abroad by Indian companies including import of goods at project site
17 S0602 Freight insurance – relating to import and export of goods
18 S1011 Payments for maintenance of offices abroad
19 S1201 Maintenance of Indian embassies abroad
20 S1 202 Remittances by foreign embassies in India
21 S1301 Remittance by non-residents towards family maintenance and-savings
22 S1302 Remittance towards personal gifts and donations
23 S1303 Remittance towards donations to religious and charitable institutions abroad
24 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
25 S1305 Contributions or donations by the Government to international institutions
26 S1306 Remittance towards payment or refund of taxes.
27 S1501 Refunds or rebates or reduction in invoice value on account of exports
28 S1503 Payments by residents for international bidding

Reference

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About Sanjay Mandavia

Trade Finance Consultant
This entry was posted in Buyers Credit, Form 15CA and Form 15CB, Income Tax, Suppliers Credit, Withholding Tax and tagged , , , , . Bookmark the permalink.

9 Responses to Revised Forms (15CA, 15CB) and Rules for payment to Non Resident

  1. Sathish says:

    can we review our generated form 15 CA?

  2. Jayesh says:

    Is there any exemption for filing 15CB even if amount exceeds specified limit ?

  3. Mahesh says:

    Can someone clarify that Payment for Import does not cum under sum Chargeable to Tax , hence Form 15Ca and 15Cb are not required

    Can I get the CBDT circular…few banks are insisting on Form15CA / Form15CB at each import payment

  4. Hitesh says:

    1) what exactly to write under item 8 a,b,c, and d. of 15cb
    2) if tax rate under DTAA and regular rate is same is it necessary to state DTAA Clause?
    3) How to get each DTAA and to find relevant clause?
    4) If TRC is not available relief would be denied?
    5) Any one is having pre filled new Form 15cb for view to all users?
    Thanks

  5. Nave em says:

    Is there is any penalty for wrong filling of 15 ca & non filling o 15 cb

  6. Rahul says:

    Thank you for the article.
    When it comes to transfer of money there seems to be so much confusion generated by banks and entities in India so, your article is a welcome relief.
    I do have one clarification which I hope someone here can address for me.
    My parents (Indian passport holders and residents of India) want to send me as gift, money from their Indian bank account to my (US Passport holder and resident of US) US bank. This year they would like to send equivalent of US $ 30,000.
    Their bank in India insists that even though it is a gift, they are required to fill Form 15CA and Form15CB even though their accountant says it is not required. The bank and the accountant cannot come to an understanding.

    A separate question –> My mother wants to sell a plot of land and send the proceeds to me by way of a gift. Will this be handled in the same way as the above scenario ?

    Thanks.

  7. pratik says:

    wef 1.4.2014, Is 15 CA/CB required for each payment/remmittance in foriegn currency made either interest or principle payment..
    My bank is BOB India. Pls. guide on same

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