15CA/CB – Semantic Taxgen Pvt Ltd

15CA/CB

Form 15CA and Form 15CB In India

Step 1

We will set up a seamless process for data collection.

Step 2

Your return will be prepared as required.

Step 3

Before you know it, your return will be ready for filing.

All About Form 15CA and Form 15CB

  • When a person makes any payment or remit any money to non resident, the bank will need to check whether the tax was paid or not
  • There are at least 28 types of foreign remittances where you do not require any submission of Form 15CA or Form 15CB
  • If the remittance or the aggregate of remittances is not higher than Rs 5 lakh in a particular financial year, you need to fill Form 15CE

Form 15CA is a declaration of remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This is starting of an effective Information Processing System which may be utilized by the Income tax Department to independently track the foreign remittances and their nature to determine tax liability.

Authorised Dealers/ Banks are now becoming more vigilant in ensuring that such Forms are received by them before remittance is affected, since now as per the revised Rule 37BB, a duty is casted on them to furnish Form 15CA (received from the remitter) to an income-tax authority for the purpose of any proceedings under the Income-tax Act.

Income Tax Department has now created online facility to file information. Thus the Form 15CA is  required to be filed online with the tax department. After that, proof of online submission should be printed out. This copy is required to be given to the Bank as a proof of tax clearance from the tax department.

Form 15 CB is Form which is required to be signed by a Chartered Accountant. This is a kind of certification regarding rates and right kind of tax paid by you. Certain details are required from Form 15CB at the time of filing Form 15CA.

At first glance it appears that Form 15CA is not required to be filled if the remittance or payment to non-resident Indian is not chargeable to tax.

As per Income Tax (Fourteenth Amendment) Rules, 2013, No reporting in Form 15CA and 15CB is to be made in case of the following nature of foreign remittances since October 2013 has been provided in Rule 37BB.

List of payments where Form 15CA / 15CB is not required
Purpose code as per RBI Nature of Payment
S0001 Indian investment abroad -in equity capital (shares)
S0002 Indian investment abroad -in debt securities
S0003 Indian investment abroad -in branches and wholly owned subsidiaries
S0004 Indian investment abroad -in subsidiaries and associates
S0005 Indian investment abroad -in real estate
S0011 Loans extended to Non-Residents
S0202 Payment- for operating expenses of Indian shipping companies operating abroad.
S0208 Operating expenses of Indian Airlines companies operating abroad
S0212 Booking of passages abroad -Airlines companies
S0301 Remittance towards business travel.
S0302 Travel under basic travel quota (BTQ)
S0303 Travel for pilgrimage
S0304 Travel for medical treatment
S0305 Travel for education (including fees, hostel expenses etc.)
S0401 Postal services
S0501 Construction of projects abroad by Indian companies including import of goods at project site
S0602 Freight insurance – relating to import and export of goods
S1011 Payments for maintenance of offices abroad
S1201 Maintenance of Indian embassies abroad
S1 202 Remittances by foreign embassies in India
S1301 Remittance by non-residents towards family maintenance and-savings
S1302 Remittance towards personal gifts anddonations
S1303 Remittance towards donations to religious and charitable institutions abroad
S1304 Remittance towards grants and donations to otherGovernmentsand charitable institutions established by the Governments.
S1305 Contributions or donations by theGovernmentto international institutions
S1306 Remittance towards payment orrefundof taxes.
S1501 Refunds or rebates or reduction in invoice value on account of exports
S1503 Payments by residents for international bidding”.

Mandatory information required by a client to file a Form 15CA and 15CB

Details of Remitter

a. Name of the remitter

b. Address of the remitter

c. PAN of the remitter

d. Principal place of business of the remitter

e. E-Mail address and phone no. of remitter

f. Status of the remitter (firm/company/other)

Details of remittee

a. Name and status of the remittee

b. Address of the remittee

c. Country of the remittee (country to which remittance is made)

d. Principal place of the business of the remittee

Details of the remittance

a. Country to which remittance is made

b. Currency in which remittance is made

c. Amount of remittance in Indian currency

d. Proposed date of remittance

e. Nature of remittance as per agreement (invoice copy to be asked from client)

Bank details of the remitter

a. Name of bank of the remitter

b. Name of branch of the bank

c. BSR Code of the bank

Others

a. Father’s name of the signing person

b. Designation of the signing person

Documents from the remittee

a. Form 10F duly filled by the authorized person of the remittee.

b. Tax residency certificate from the remittee (tax registration of the country in which remittee is registered).

c. Certificate that the remittee does not have any permanent establishment in India.

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+91 9654831210

Email Support

info@semantictaxgen.in

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New Delhi-110092

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