{"id":25594,"date":"2019-10-17T19:00:25","date_gmt":"2019-10-17T13:30:25","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=25594"},"modified":"2019-10-17T18:38:50","modified_gmt":"2019-10-17T13:08:50","slug":"implications-of-form-15ca-and-form-15cb","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/implications-of-form-15ca-and-form-15cb\/","title":{"rendered":"Implications of Form 15CA and Form 15CB"},"content":{"rendered":"<p class=\"has-drop-cap\">In the present times of globalisation, there are the least restrictions imposed on businesses due to which they are spreading around the world with huge international transactions on a daily <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>. Taxability and Tax deduction is complicated proceeding when NRIs are involved. Eligible rate of tax, deductions allowed, etc. on business transactions made with Non-residents Indians are governed under the Income Tax Act. Here in this article we are going to discuss about Form 15CA &amp; 15 CB in detail;<\/p>\n\n\n\n<p><\/p><div class=\"shadow4\"><em>As per Section 195(6) <\/em><em>of the Income Tax Act, 1961, any\nIndian company or individual who remits or make the payment to any NRI or\nForeign company shall furnish the information and declaration relating to such\npayment in the prescribed form. <\/em><\/div><br>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rule 37BB &ndash; An Overview<\/strong><\/h2>\n\n\n\n<p>Rule 37BB governs the manner to furnish the information or file\nthe declaration by the assessee who makes any payment to Non-Resident India\n(NRIs) or foreign companies as per the following:<\/p>\n\n\n\n<ul><li><strong>Payment\nmade is less than INR 5 Lakhs: <\/strong><\/li><\/ul>\n\n\n\n<p>The assessee shall give the declaration of such payment in <em><strong>Part A of Form 15CA.<\/strong><\/em><\/p>\n\n\n\n<ul><li><strong>Payment exceeds INR 5 Lakhs:<\/strong><ul><li>The assessee shall give the detail of such payment in <em><strong>Part B of Form 15CA<\/strong>.<\/em><\/li><li>The assessee shall give the details of such payment in <em><strong>Part C of Form 15CA<\/strong>.<\/em><\/li><li>The assessee has to file the <em><strong>declaration in form 15CB<\/strong><\/em><strong> certified by Chartered Accountant<\/strong>.<\/li><li>Order from the Assessing Officer as per <em>Section 195(2) &amp; 195(3).<\/em><\/li><li>Certificate from Assessing Officer under section 197 of Income Tax Act, 1961<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li><strong>Payment\nmade is not taxable as per Income Tax Act, 1961:<\/strong><strong><\/strong><\/li><\/ul>\n\n\n\n<p>Assessee is required to furnish the details of such payment in <em><strong>Part D of Form 15CA<\/strong>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Definition of Non-Resident India (NRIs) &amp;\nForeign company<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>NRIs:<\/strong><\/h3>\n\n\n\n<p>An individual is said to be <strong><em>Resident of India <\/em><\/strong>ifhe fulfills the\nfollowing condition:<\/p>\n\n\n\n<ol><li>Has\nstayed in India for 182 days or more in that relevant year<\/li><\/ol>\n\n\n\n<p style=\"text-align:center\"><strong>OR<\/strong><\/p>\n\n\n\n<ul><li>Has\nstayed in India for a period of full 1 year out of 4 years previous year and at\nleast 60 days in a relevant previous year.<\/li><\/ul>\n\n\n\n<p><strong><em>The\nassessee will be considered as Non-Resident Indian (NRIs) if he doesn&rsquo;t satisfy\nany of the above conditions.<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Foreign Company:<\/strong><\/h3>\n\n\n\n<p>As per Section <strong>2(32) of the Income Tax Act, 1961<\/strong>, any company which is not a domestic company<em>(a domestic company is registered in India and is liable for taxation as per the provisions of Indian Income Tax Acts) <\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Form 15CA under Rule 37BB<\/strong><\/h2>\n\n\n\n<p>Form 15CA is filed for filing the declaration by\na remitter who has the remit or paid in the course of international\ntransactions.&nbsp; This form is used as a\nmedium for collecting the information concerning the payments for which tax is\npayable by the recipient (non-resident) of such income. With the help of this\nform, Income Tax Departments keep an eye on every foreign transaction and\nforeign remittances.&nbsp;&nbsp; <\/p>\n\n\n\n<p><\/p><div class=\"shadow4\"><em><strong>Rule 37BB mandates it for authorized banks to obtain Form 15CA from the remitter. Form 13 CA is required to be obtained only if the transaction comes under the purview of tax liability under the Income Tax Act. <\/strong><\/em><\/div><br>\n\n\n\n<p>In case the payment is not liable for taxation\nor doesn&rsquo;t relate to NRIs, such form is exempted, provided that remitter shall\nsubmit the declaration in the form of note specifying the nature of the payment\nand the exempted condition thereof. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Information to be furnished in Form 15CA<\/strong><\/h2>\n\n\n\n<p>Following are the details of the information\nrequired to be disclosed in Form 15CA:<\/p>\n\n\n\n<ul><li>Name &amp; Address of the remitter and recipient\nof payment<\/li><li>Principal Place of Business of both the party<\/li><li>PAN of remitter<\/li><li>Email id, phone number &amp; other contacting\ndetails of remitter<\/li><li>Status of both parties\nsuch as company, firm, individual, etc.<\/li><li>The country in which the payment is made.<\/li><li>Currency in which payment is made<\/li><li>Proposed date of remittance<\/li><li>Nature of the remittance along with the\nsupporting documentation of a copy of the invoice<\/li><li>Name, branch and BSR code of the bank of the\nremitter<\/li><li>Designation &amp; details of signing an\nauthority<\/li><li>Duly filed Form 10F by the receipt of such\npayment. <\/li><\/ul>\n\n\n\n<p><\/p><div class=\"shadow4\"><em>Form 10F is filed to the remitter who deducts\nthe tax at source in case of international transactions. This form is obtained\nto claim the benefits of DTAA (Double Tax Avoidance Agreement) by the\nauthorized bank of the remittee<\/em><\/div><br>\n\n\n\n<ul><li>A certificate that declares the remittee has no\npermanent establishment in India<\/li><li>Tax Registration Certificate of the country in\nwhich the remittee is registered.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Procedure\nto file Form 15CA<\/strong><\/h2>\n\n\n\n<p>Following is the step by step process to file\nthis form online:<\/p>\n\n\n\n<ul><li>Visit the income tax website <a href=\"https:\/\/www.incometaxindiaefiling.gov.in\/\">https:\/\/www.incometaxindiaefiling.gov.in\/<\/a><\/li><li>Log in to the account by using login credentials such as PAN as user-id &amp; password<\/li><li>Select the &ldquo;Income Tax Forms&rdquo; from the\ndrop-down menu under the e-file menu.<\/li><li>Choose Form 15CA amongst all the options of\nforms.<\/li><li>Select the type of form amongst Part A, B, C, or\nD as per the class of declaration.<\/li><li>Part C is pre-filled\nby the acknowledgment number of e-form 15CB<\/li><li>Complete the form by filling the necessary\ndetails and submit it.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Parts\nof Form 15CA<\/strong><\/h2>\n\n\n\n<p>Following are the four different parts of form\n15CA to be filed depending upon the taxability and amount of remittance:<\/p>\n\n\n\n<ul><li><strong>Part\nA:<\/strong> if the remittance is liable to be taxed and the\nvalue of remittance doesn&rsquo;t exceed INR 5 Lakhs in any FY.<\/li><li><strong>Part\nB:<\/strong> if the remittance is liable to be taxed and the\nvalue of remittance exceeds INR 5 Lakhs in any FY.<\/li><li><strong>Part\nC: <\/strong>if the remittance is liable to be taxed, the\nvalue of remittance exceeds INR 5 Lakhs in any FY along with the certificate is\nrequired to be submitted in Form 15CB to be given by a Chartered Accountant.<\/li><li><strong>Part\nD:<\/strong> in case the remittance is not taxable under the\nprovisions of Rule 37BB.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Form 15 CB under Rule\n37BB<\/strong><\/h2>\n\n\n\n<ul><li>Form 15CB is compulsorily filed before the\nsubmission of Part C of Form 15CA.<\/li><li>Form 15CB declares and gives an assurance that\napplicable provisions of the Income Tax concerning\nforeign remittances are properly adhered to.<\/li><li>Form 15CB is duly certified by Chartered\nAccountant, declaring the remittance is chargeable under the provisions of the\nIncome Tax Act.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Exemption\nto file Form 15CA\/15CB<\/strong><\/h2>\n\n\n\n<p>Following international transactions are\nexempted from the purview of this section:<\/p>\n\n\n\n<ul><li>Indian Investment Abroad in equity, debt\nsecurities, real estates and in a wholly-owned subsidiary<\/li><li>Any Loans are given to NRIs<\/li><li>Advance payment against any import<\/li><li>Payments for the settlement of invoice against\nimport<\/li><li>Imports made by a diplomat mission<\/li><li>Import made for the use by ECD office for the\nvalue below INR 5 Lakhs.<\/li><li>Any operations &amp; expenses made to Indian\nAirlines Companies that are operating abroad.<\/li><li>Payment for the business travel<\/li><li>Travel expenses for medical treatment<\/li><li>Pilgrimage trip<\/li><li>Postal services<\/li><li>Any construction of projects abroad done by\nIndian entities.<\/li><li>Freight Insurance is taken for the import or\nexport of goods.<\/li><li>Maintenance of Indian Embassy abroad<\/li><li>Any remittance by the foreign embassy to India<\/li><li>Any remittance or payment made by any NRIs to\nits family residing in India<\/li><li>Donations made to charitable and\nreligious institute operating abroad<\/li><li>Donations made by the government to any\ninternational institution.<\/li><li>Refund or rebate in the invoice value on account\nof export made<\/li><\/ul>\n\n\n\n<p><em><strong>Also, there is no need to furnish the information in Form 15CA and 15CB for the payments that require no approval from <a rel=\"noreferrer noopener\" aria-label=\"RBI (opens in a new tab)\" href=\"https:\/\/www.rbi.org.in\/\" target=\"_blank\">RBI<\/a> under its Liberalized Remittance Schemes.<\/strong><\/em><\/p>\n\n\n\n<p><strong>Suggested Reads:<\/strong><\/p>\n\n\n\n<ul><li><a rel=\"noreferrer noopener\" aria-label=\"Section 194-H of the Income Tax Act, 1961 (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/section-194-h-of-the-income-tax-act-1961\/\" target=\"_blank\">Section 194-H of the Income Tax Act, 1961<\/a><\/li><li><a href=\"https:\/\/enterslice.com\/learning\/section-73-of-the-income-tax-act-1961%ef%bb%bf\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Section 73 of the Income Tax Act, 1961 (opens in a new tab)\">Section 73 of the Income Tax Act, 1961<\/a><\/li><li><a rel=\"noreferrer noopener\" aria-label=\"Get Clarity on the Difference between Tax Planning and Tax Avoidance (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/difference-between-tax-planning-and-tax-avoidance\/\" target=\"_blank\">Get Clarity on the Difference between Tax Planning and Tax Avoidance<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In the present times of globalisation, there are the least restrictions imposed on businesses due to which they are spreading around the world with huge international transactions on a daily <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\" href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>. Taxability and Tax deduction is complicated proceeding when NRIs are involved. Eligible rate of tax, deductions allowed, etc. on business transactions made with Non-residents [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":25602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2435],"tags":[],"acf":{"service_id":"51"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Implications of Form 15CA and Form 15CB: Everything You Need to Know<\/title>\n<meta name=\"description\" content=\"Form 15CA is filed for filing the declaration by a remitter who has the remit or paid in the course of international transactions.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/implications-of-form-15ca-and-form-15cb\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Implications of Form 15CA and Form 15CB: Everything You Need to Know\" \/>\n<meta property=\"og:description\" content=\"Form 15CA is filed for filing the declaration by a remitter who has the remit or paid in the course of international transactions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/implications-of-form-15ca-and-form-15cb\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-17T13:30:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-17T13:08:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/10\/Form-15CA-15CB.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Savvy Midha","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/10\/Savvy-Midha.jpg","authorDescription":"\"Savvy Midha holds the degrees of Bachelor of Commerce(honors), LL.B and Company Secretary. She is an experienced Legal and Financial writer with expertise in research, drafting, and copy-writing.\"","postViews":459,"readingTime":5,"nextPost":{"id":25609,"slug":"read-details-about-section-13-of-the-income-tax-act-1961"},"prevPost":{"id":25536,"slug":"gst-network-to-launch-a-new-version-of-return-filing-interface"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/10\/Form-15CA-15CB.jpg","postTerms":"Taxation","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/25594"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=25594"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/25594\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/25602"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=25594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=25594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=25594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}