When it comes to international remittances, the first thing that comes to mind is Form 15CA and Form 15CB compliance. Most users find it difficult and time-consuming to comply with Forms 15CA and 15CB. Many of them are uninformed of the existing requirements and methods of compliance. As a result, today I'll go over some crucial points about Form 15CA and Form 15CB, as well as the compliance procedure.
The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB.
The Revised Rules became effective from 1st April 2016.
The significant changes are as follows –
A person responsible for making a payment to a non-resident or to 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:
Following documents is required to be submitted:
When the payment made is not chargeable to tax under IT 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.