Complying with Form 15CA and Form 15CB is important for making payments to non-residents. This includes deducting tax as per the Income Tax Act or DTAA provisions. Hence, Form 15CA and Form 15CB can be a time-consuming process, requiring documentation and approval from a Chartered Accountant.
The income tax department has revised the rules relating to the preparation & submission of Form 15CA and Form 15CB.
The significant changes are as follows –
A person responsible for making a payment to a non-resident or a foreign company has to provide the following details:
When payment made is below Rs 5 lakh: For such payments information is required to be submitted in Part A of Form 15CA
When payment made exceeds Rs 5 lakh:
The following documents are required to be submitted:
When the payment made is not chargeable to tax under the Income Tax Act: Part D of Form 15CA is required to be submitted.
Overall list of payments where no forms 15CA and 15CB are required are as follows (Rule 37BB):
Sl. No. | Nature of Payment |
1 | Indian investment abroad -in equity capital (shares) |
2 | Indian investment abroad -in debt securities |
3 | Indian investment abroad-in branches and wholly owned subsidiaries |
4 | Indian investment abroad -in subsidiaries and associates |
5 | Indian investment abroad -in real estate |
6 | Loans extended to Non-Residents |
7 | Advance payment against imports |
8 | Payment towards imports-settlement of invoice |
9 | Imports by diplomatic missions |
10 | Intermediary trade |
11 | Imports below Rs.5,00,000-(For use by ECD offices) |
12 | Payment- for operating expenses of Indian shipping companies operating abroad. |
13 | Operating expenses of Indian Airlines companies operating abroad |
14 | Booking of passages abroad -Airlines companies |
15 | Remittance towards business travel. |
16 | Travel under basic travel quota (BTQ) |
17 | Travel for pilgrimage |
18 | Travel for medical treatment |
19 | Travel for education (including fees, hostel expenses etc.) |
20 | Postal Services |
21 | Construction of projects abroad by Indian companies including import of goods at project site |
22 | Freight insurance – relating to import and export of goods |
23 | Payments for maintenance of offices abroad |
24 | Maintenance of Indian embassies abroad |
25 | Remittances by foreign embassies in India |
26 | Remittance by non-residents towards family maintenance and savings |
27 | Remittance towards personal gifts and donations |
28 | Remittance towards donations to religious and charitable institutions abroad |
29 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments. |
30 | Contributions or donations by the Government to international institutions |
31 | Remittance towards payment or refund of taxes. |
32 | Refunds or rebates or reduction in invoice value on account of exports |
33 | Payments by residents for international bidding. |
To know more about Form 15CA and 15CB in detail and how to file online, click here.