Form 15CA and 15CB - Brief overview

Form 15CA and 15CB


Whenever any remittance is required to be made to Non Resident or to foreign banks or foreign company, the bankers usually ask for copies of form 15CA and 15CB from the remitter.

 

In this writeup, we will try to understand about form 15CA and 15CB and when it is required.

 

Legal requirement of form 15CA and 15CB

 

As per rule 37BB of the Income Tax act, 1961, at the time of any payment to any non-resident or foreign company, which exceeds the amount of Rs 500000 ( Chargeable to tax), the remitter has to furnish the details under the form 15CA under the Income-tax act and also has to obtain form 15CB from Chartered Accountant. Nowadays, both form 15CA and 15CB needs to be filed online on the portal of the tax department.

 

What is form 15 CA?

 

Form 15CA is a sort of declaration which is filed online by the remitter wherein He states that proper taxes has been deducted at the time of making remittance of money abroad.


 


What is Form 15CB?


Form 15CB is an online certificate issued by a Practicing Chartered Accountant. It provides a confirmation that at the time of deduction of taxes, provisions of domestic law and treaty has been taken into consideration.

 

Components of form 15CA

 

Form 15CA has 4 parts which needs to be filled as under:

 

●        Part A: Where the aggregate remittance amount doesn’t exceed Rs 5,00,000 during the said financial year

 

●        Part B: Where the aggregate remittance amount do exceeds Rs 5,00,000 during the said financial year and the certificate has been received from the Assessing officer

 

●        Part C: Where the aggregate remittance amount exceeds Rs 5,00,000 during the said financial year and a certificate in form 15CB has been obtained by the accountant

 

●        Part D: Where the remittance is not chargeable to tax under the Income-tax act

 

Is filing of form 15CA and 15CB mandatory in all the cases?

 

The answer is NO. In following cases, there is no requirement to file form 15CA and 15CB:

 

●        If the aggregate remittance amount doesn’t exceed Rs 5 lac or

●        If the payment is covered under the list of exempted payments where there is no compulsion to file the above-said forms under the Income-tax act.

 

List of information required for filing form 15CA and 15CB

 

Normally, following information are required for preparing and uploading form 15CA and 15CB:

 

ü  Name and address of the remitter and remittee

ü  Country to which remittance is paid

ü  Amount to be paid with the currency in which it has to be paid

ü  Proposed date of remittance,

ü  PAN, Address and phone number of remitter,

ü  Bank and branch of bank of the remitter,

ü  Remittee’s nationality and remitter’s status,

ü  Designation of the Signing person.

ü  Digital Signature

ü  Income Tax Login and Password

 

Both the forms can be uploaded by login into the tax department website and filling the necessary details. Once form 15CB is uploaded by CA through his login, the remitter or assesse can view the same and approve and submit.

 

Thus, form 15CA and 15CB are one of the important documents required by the bankers before permitting remittance of any money outside India. Further, non filing of same may also lead to penalty in the hands of the remitter.

Location: India

Comments

Post a Comment

Popular posts from this blog

BUSINESS SETUP IN INDIA- Various options available for Doing Business in India

BUSINESS SETUP IN INDIA   One of the most common queries received by Indian consulting firms from global corporations nowadays is about business setup in India . Due to globalization, the companies all over the world has expanded its presence in other jurisdiction or territories from where they are either engaged in trading business or export import or providing services globally. Owing to its huge consumer market, India has also seen quite a surge in foreign company registration in India in recent years. Just like Indian companies are curious about how to setup business in foreign countries, similarly, foreign companies are also interested in business setup in India and want to know about various options available for setting up business in India. VARIOUS OPTIONS FOR BUSINESS SETUP IN INDIA Well, the type of entities for doing business in India depends upon various factors like Nature of business of the Company, Long term vision of the company and purpose of business set
Read more

OUTSOURCE ACCOUNTING SERVICE- PROS AND CONS

OUTSOURCE ACCOUNTING SERVICE One of the dilemmas faced by many businessmen is that whether to keep an in house accountant for day to day book keeping or to outsource accounting service to an external agency. There is no readymade answer to the same and it all depends upon nature of business, complexities of accounting, annual turnover of the company and other factors. Normally, during the initial stage of businesses, it makes sense to outsource accounting service instead of keeping an in house accountant merely from cost saving purpose and as the business grows, it is advisable to keep an in house accountant. In this write up, we would be discussing the pros and cons of account outsourcing instead of keeping an in-house accountant Pros of Account Outsourcing a)       Cost Saving As mentioned above, in the initial stage of business, lot of cost saving can be done by taking account outsourcing service of an external firm. This is due to the fact that keeping an in house
Read more

Filing of form 15CA and 15CB – Some practical issues

Image
  Form 15CA and 15CB  Normally, when any money is to be remitted outside India, the bankers often ask for the copies of form 15CA and 15CB which need to be filed electronically. It means that firstly the assessee need to upload form 15CA and 15CB electronically which requires e- verification through EVC mode and later copy of same need to be submitted to the banker for further processing of remittance outside India. Form 15CA and 15CB need to be filed even if all the taxes are already paid in India. Therefore, one cannot take a plea that since all the taxes are already paid, so what is the need for electronically uploading form 15CA and 15CB. For instance, often when an NRI disposed of his property in India, He need to compute capital gain tax liability, sometimes there is no capital gain tax but refund in the case of the assessee. However, while making remittance of sale proceeds, He needs to submit copy of form 15CA and 15CB. Another issue which normally arises in cases wher
Read more