Form 15CA & Form 15CB applicable on All Payment

ConfusionPost below article CBDT has revised rules for form 15CA and Form 15CB effective from April 01, 2016. Refer article: Form 15CA and Form 15CB not Required for Import Payments

In revised notification issued by CDBT on 16th December 2015, effective 01’st April 2016, import payment has been made part of exempted list. Hence forth Form 15CA and Form 15CB will not required for the same during import transactions.

Addition to exempted List

Purpose Code Nature of Payment
S0101 Advance Payment against Imports
S0102 Payment towards Imports – Settlement of Invoice
S0103 Imports by Diplomatic Missions
S0104 Intermediary Trade
S0190 Imports below  5,00,000 ­(For use by ECD offices)

Old Article

In earlier article “Revised Form (15CA, 15CB) and Rules for Payment to Non Resident“, we had discussed that Form 15CA and Form 15CB is applicable only on those payment which were chargeable to tax.

In Finance Bill 2015,  a new sub-section 6 has been added to Section 195

In section 195 of the Income-tax Act, for sub-section (6), the following sub-section shall be substituted with effect from the 1st day of June, 2015, namely:— “(6) The person responsible for paying to a non-resident, (not being a company), or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.”.
* Details in relation to above Form is provided in rule 37BB and Form Nos. 15CA & 15CB
After section 271H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2015, namely:— “271-I. If a person, who is required to furnish information under sub-section (6) of section 195, fails to furnish such information, or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of one lakh rupees.”.
Which means from June 1, 2015 on all payments made to non resident or foreign company Form 15CA and Form 15CB is applicable; except for payments under specified list (given below).
From Buyers Credit respective, as per our interpretation, Form 15CA and Form 15CB will still not be applicable to payments made to Indian Bank Overseas Branches as parent of the same is resident and above clarification hold true only for non-resident, (not being a company), or to a foreign company. Further details on the same can be found in article ” Form 15CA & Form 15CB not Applicable on Interest Payment to Indian Bank Overseas Branches
Specified List
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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23 thoughts on “Form 15CA & Form 15CB applicable on All Payment”

  1. whether raw material in the course of regular imports are covered under 15CA/CB for which NIL TDS has to be obtained ? can you please elobrate waiting for this post eagerly

  2. As per the new rule importers are required disclose information of foreign remittance by submitting Form 15CB & Form 15CA to the Bank.

    In the connection, I request you to throw some light on the below 2 points:

    1) Instead of making payment from own account if Importer is availing Buyers Credit for the period of 3 years (As per sanction & RBI guidelines) then when exactly form 15CB & 15CA need to be submitted.

    Case 1 – At the time of making payment to Supplier by availing buyers credit.
    Case 2 – At the time of making final repayment of Buyers Credit (Afeter 3 years from the date of shipment)

    2) If Case 2 is applicable & Buyers credit is availed from Indian PSU Bank, then do we need comply with the aforesaid requirement.

    1. 1. While making payment to suppliers Form 15CA and Form 15CB is required along with A1 form. Irrespective buyers credit is taken or not.
      2. Incase repayment / interest payment for buyers credit
      A. Foreign Bank or subsidiary of Indian Bank: Form 15CA and Form 15CB is required
      B. Indian Bank overseas Branch: As per our interpretation not required.

  3. If a company in India purchase any product from a foreign company ( Manufacturer) Form 15CA / 15CB is required along with Form A1, Invoice, Bill of entry.

  4. If a person having NRO account , old FD matured and wanna to invest in new FD , still their is requirement to file form 15ca and 15cb (both the transactions are in INR)???

  5. Form 15 CA n 15 CB is required for purchase of goods?

    some CA’s told me that it is required but some CA’s told me it is not required because this form required only for services. 15 CA n 15 CB is required for DTAA benefit. lower or zero deduction of TDS. but if we are importing goods then why this form is required?

  6. Is there any limit to which extent these forms are not required.Soppose anyone want to pay $50 against commission even then one has to fill form 15 CA/15CB.

  7. Is 15CA and 15CB required only for foreign remittance or in cases where cheque is issued in India and deposited into an account held by an NRI also (for purchase of property from NRI). My doubt is because sub-section (6), just says for paying to a non-resident, it doesn’t specifically say for foreign remittances.

  8. 15CA AND 15CB are required when the amount is paid overseas or to the parties NRE account but if paid in their NRO account it is not required.

  9. We have purchased spare parts from Australia on May-16 & now we need remit amount to supplier.

    Please help me which form i need to be submit to bank.

  10. Hello Sir,
    We are indian based company selling our product on amazon in United Kingdom. We are taking service of a UK based company which files UK VAT for us. Now we have to pay this UK company for their services. Now whether we require to submit 15CA/CB or not.

  11. payment to LinkedIn for subscription charges for a particular month through credit card. Is in this case also form 15CA or 15 CB required?

    please help

  12. Indian based company made payment to us based institute (GIA LAB) for certifying his diamond. now this payment below $1500.
    Here in this case form 15CB not required but bank person ask for that and what information file in form. US based institute not liable to tax in india.
    What detail shold file under DTAA TDS rate ?? and what reason should mention in it ??

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