- The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed
- Rule 37BB defines the manner to furnish information in form 15CB and making declaration in form 15CA.
Why to file Form 15CA?
- It’s a way to collect information and data about foreign remittances. It contains details of
- Name of recipient of remittance
- PAN of the recipient of remittance, if available
- Complete address, email and phone number of the recipient of remittance
- Country to which remittance is made
- Form 15CA to be submitted electronically using digital signatures. You may also submit it without DSC as per procedures.
- Form 15CA is mandatory to be submitted before the remittance is made.
Why to file Form 15CB?
It is a Tax Determination Certificate where the Chartered Accountant examines the nature of remittance and its taxability under the Income Tax Act along with provisions of Double Tax Avoidance Agreements(DTAA).
Classification of Form 15CA
- Information is required to be furnished for payments to a nonresident not being a company, or to a foreign company. Form 15CA has been divided into 4 parts which has been classified below:
Part A: Part A of Form 15CA is required to be filled up if the remittance is chargeable to tax under the provisions of the Income tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, does not exceed Rs.5 lakh during the financial year.
Part B: Part B of Form 15CA is required to be filled up when the remittance or the aggregate of such remittances, as the case may be, exceeds Rs.5 Lakh during the financial year and an order certificate u/s 195(2)/195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer (Whether Nil rate or Lower rate Certificate).
Part C: Part C of Form 15CA is required to be filled up when the remittance or the aggregate of such remittances, as the case may be, exceeds Rs. 5 lakh during the financial year and a certificate in Form No. 15CB from an Chartered accountant has been obtained
Part D: Where the remittance is not chargeable to tax under Income Tax Act. 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]
- The remittance is of the nature specified in the list below:
|Sl. No.||Purpose code as per RBI||Nature of payment|
|1||S0001||Indian investment abroad – in equity capital (shares)|
|2||S0002||Indian investment abroad – in debt securities|
|3||S0003||Indian investment abroad – in branches and wholly owned subsidiaries|
|4||S0004||Indian investment abroad – in subsidiaries and associates|
|5||S0005||Indian investment abroad – in real estate|
|6||S0011||Loans extended to Non-Residents|
|7||S0101||Advance payment against imports|
|8||S0102||Payment towards imports – settlement of invoice|
|9||S0103||Imports by diplomatic missions|
|11||S0190||Imports below Rs.5,00,000 – (For use by ECD offices)|
|12||SO202||Payment for operating expenses of Indian shipping companies operating abroad|
|13||SO208||Operating expenses of Indian Airlines companies operating abroad|
|14||S0212||Booking of passages abroad – Airlines companies|
|15||S0301||Remittance towards business travel|
|16||S0302||Travel under basic travel quota (BTQ)|
|17||S0303||Travel for pilgrimage|
|18||S0304||Travel for medical treatment|
|19||S0305||Travel for education (including fees, hostel expenses etc.)|
|21||S0501||Construction of projects abroad by Indian companies including import of goods at project site|
|22||S0602||Freight insurance – relating to import and export of goods|
|23||S1011||Payments for maintenance of offices abroad|
|24||S1201||Maintenance of Indian embassies abroad|
|25||S1202||Remittances by foreign embassies in India|
|26||S1301||Remittance by non-residents towards family maintenance and savings|
|27||S1302||Remittance towards personal gifts and donations|
|28||S1303||Remittance towards donations to religious and charitable institutions abroad|
|29||S1304||Remittance towards grants and donations to other Governments and charitable institutions established by the Governments|
|30||S1305||Contributions or donations by the Government to international institutions|
|31||S1306||Remittance towards payment or refund of taxes|
|32||S1501||Refunds or rebates or reduction in invoice value on account of exports|
|33||S1503||Payments by residents for international bidding.|