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.
The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB.
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
What is Form 15CB ?
15CB certificate is an alternate channel of obtaining Tax clearance apart from Certificate from Assessing Officer.
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.
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
Revised rules are effective 1st April 2016.
The significant changes are as follows –
- Form 15CA and 15CB will be NOT be required to be furnished by an individual for remittance which do not requiring RBI approval
- 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 including payments for imports.
- Form No. 15CB will only be required for payments made to non-residents which are taxable and the payment exceeds Rs. 5 lakh.
Here are the full details
A person responsible for making a payment to a non-resident or to a foreign company has to provide the following details –
When payment made is Rs 5 lakhs or less
For such payments information is required in Part A of Form 15CA
When payment made exceeds Rs 5lakhs
- A certificate from Assessing Officer under Section 197
- An order from Assessing Officer under section 195(2) or 195(3)
- Part B of Form 15CA has to be provided
- Certificate in Form 15CB from an accountant
- Part C of Form 15CA
When the payment made is not chargeable to tax under income tax act
- Part D of Form 15CA
- In the following cases no submission of information is required
- the remittance is made by an individual and it does not require prior approval of Reserve Bank of India [as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000]
- or the remittance is of the nature specified in the list below:
|Sl. No.||Nature of Payment|
|1||Indian investment abroad -in equity capital (shares)|
|2||Indian investment abroad -in debt securities|
|3||Indian investment abroad-in branches and wholly owned
|4||Indian investment abroad -in subsidiaries and associates|
|5||Indian investment abroad -in real estate|
|6||Loans extended to Non-Residents|
|7||Advance payment against imports|
|8||Payment towards imports-settlement of invoice|
|9||Imports by diplomatic missions|
|11||Imports below Rs.5,00,000-(For use by ECD offices)|
|12||Payment- for operating expenses of Indian shipping companies operating abroad.|
|13||Operating expenses of Indian Airlines companies operating abroad|
|14||Booking of passages abroad -Airlines companies|
|15||Remittance towards business travel.|
|16||Travel under basic travel quota (BTQ)|
|17||Travel for pilgrimage|
|18||Travel for medical treatment|
|19||Travel for education (including fees, hostel expenses etc.)|
|21||Construction of projects abroad by Indian companies including import of goods at project site|
|22||Freight insurance – relating to import and export of goods|
|23||Payments for maintenance of offices abroad|
|24||Maintenance of Indian embassies abroad|
|25||Remittances by foreign embassies in India|
|26||Remittance by non-residents towards family maintenance and-savings|
|27||Remittance towards personal gifts and donations|
|28||Remittance towards donations to religious and charitable institutions abroad|
|29||Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.|
|30||Contributions or donations by the Government to international institutions|
|31||Remittance towards payment or refund of taxes.|
|32||Refunds or rebates or reduction in invoice value on account of exports|
|33||Payments by residents for international bidding.|
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