Applicability of Forms 15CA and 15CB for payment of rent outside India
Every year, millions of Indians remit money outside India for one purpose or the other. Form 15CA and 15CB are required for remittance of any money outside India either to Non Resident or to the foreign company or from Indian bank account to foreign bank account or from NRO account to NRE account.
It may
be noted that subsequent to amendment made in section 195, now, the person
responsible for paying rent has to provide certain information to
The tax
department irrespective of the fact whether such remittance is taxable in India
or not.
Also, rule 37BB (3) (ii) provides that there is no
need to furnish aforesaid information under following two circumstances:
b) b) In case the
remittance falls under prescribed list of 33 categories which are exempted and
are covered under liberalized remittance scheme of the RBI.
Therefore, aforesaid payment of rent to nonresident or to their NRO account may be covered under LRS limit of USD 2,50,000 without any RBI approval for such remittance.
Further, department has also issued a FAQ wrt issuance of form 15CA on its website and in reply to one of the questions as to when is form 15CA not required to be furnished,
The department understanding is also same as above
i.e Form 15CA is not required to be furnished in case remittance is made by
resident individual and it does not require prior
Approval of RBI or secondly, such remittance is
under the exempted list of RBI.
Thus, from reading of above, it appears that there may not be any requirement of furnishing of form 15ca and 15cb at the time of payment of rent to nonresident by resident individual.
2)
2) As per RBI master
direction on “other remittance facilities” AD bankers require simple letter
from remitter in case amount of current account remittance does not exceed
USD 25,000. Also,
since payment of rent falls under such current account transaction, there is no
requirement of furnishing of form 15CA.
Therefore, from foregoing, one may conclude that
there is no requirement to furnish form 15CA and 15CB at the time of payment of rent by resident individual to nonresident.
However, as mentioned above, alternate views are also possible on aforesaid matter and one may consult his/her tax advisor before making final decision.
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