A person making a payment to a non-resident or a foreign company must submit Form 15CA. You can submit form 15CA and CB online to the IT Department. Where payment to be sent is more than Rs5 lakh in a year and is taxable in India, a certificate from a chartered accountant in Form 15CB is needed before uploading Form 15ca cb online. Filing form 15ca cb online is possible these days and is fairly easy, so that might be the best option for you to choose, for both convenience and speed.
In Form 15CB, a chartered accountant audits details of the payment, rate of tax deducted at source (TDS) and TDS deduction as per section 195 of the income-tax Act, if any Double Tax Avoidance Agreement (DTAA) is relevant. It will also have other information related to the nature and purpose of the payment. Banks need these certificates before they make any remittance to a non-resident. This helps the IT Department in keeping a watch on foreign payments and tax to be paid on them.
Why Form 15CA?
Form 15CA is a remitter’s statement that is used to manage data about payments that are taxable in the hands of non-resident recipients. This is the start of an effective Data Processing System that the Income Tax Department will use to monitor international payments and their existence in order to determine tax liability.
Authorised Dealers/Banks are becoming more vigilant in ensuring that certain Forms are obtained by them prior to remittance, as per revised Rule 37BB. They are now required to give Form 15CA to the remitter to an income-tax official for the requirements of any proceedings under the Income-tax Act.
Why Form 15CB?
The answer is Form 15CB. Chargeability can be determined and certified by getting the Certificate from a Chartered Accountant in Form no. 15CB. This certificate has been prescribed under Section 195(6) of the Income tax Act and is an another medium of getting Tax clearance apart from Certificate from Assessing Officer.
The study of Form 15CB reveals that there is no requirement or exception to obtain such a certificate if the payment is not subject to tax. In fact, Form 15CB is the Tax Determination Certificate, in which the Issuer CA examines the remittance in light of the chargeability provisions of Sections 5 and 9 of the Income Tax Act, as well as laws governing Double Taxation Avoidance Agreements with the OECD. Therefore, in my opinion, it is preferable to get 15CB even in cases where 15CA is not authorized.
Though there is no disciplinary provision described in the Act if such Certificates in Form 15CB and Declaration in Form 15CA are not obtained, but it is in the interest of Assessee to have a tax determination in Form 15CB from a CA, because Non-resident taxation involves various complex issues and the results of Non deduction are severe.
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Applicability of filling 15ca cb online
- If the amount of payment is not chargeable to tax, then no forms are needed.
- If the payment is covered under a certain exemption list, then only Part D of the Form 15CA is to be submitted.
- Where payment is less than Rs. 5 lakh in a certain financial year – Only Form 15CA – Part A to be submitted
- Where payment is more than 5 lakh rupees – Form 15CA – Part C and Form 15CB to be sent
- Where payment is more than 5 lakh rupees and a certificate included in Section 195(2)/195 (3)/197 of the Income Tax has been taken – Form 15CA – Part B to be submitted.
Parts of Form 15CA
The form is divided into four parts, to be filled based on the situations that are common at the time. The four parts are –
To be filled ignoring whether payments are taxable or not and the payment or its aggregate is not more than Rs. 5 lakh in a financial year.
To be filled when the Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been collected from the Assessing Officer.
To be filled when the payment or its aggregate is more than Rs. 5 lakh in a financial year and that payment is chargeable to tax.
Is filled when as per the domestic laws, the payment is not chargeable to tax.
Documents required for form 15ca cb
- Form 10f Duly Filled by the Authorized Person of The Remittee.
- Tax Residency Certificate from The Remittee (Tax Registration of The Country during which Remittee Is Registered)
- Certificate that the Remittee doesn’t Have Any Permanent Establishment in India. This is often Mandatory. If the Income may be a Business Income and Not Chargeable to Tax as Per DTAA If there’s No P.E in India.
- This Is Essential If Any Advantage Under DTAA Is Taken, Whether by Way of Lower Rate of Deduction of Tax at Source or No Deduction of Tax at Source as Per DTAA.
Procedure to File Form 15ca cb online
The 15ca cb procedure for form filling is rather simple, and filling 15CA, CB online is fairly easy too. Form 15CA and CB can be filled through the following steps.
- The forms can be found on the income tax E-Filing website – https://www.incometaxindiaefiling.gov.in/home
- Where a person is already registered on the site, he must log in with the right information, generally the PAN number and the password. If he is not yet registered, he has to click on the “Register” tab on the page and then proceed to fill in all the important details and to finish the registration on the site.
- After successfully logging in, select the “e-file” option from the dropdown list that appears. Select the “Prepare and Submit Online Form (Other than ITR)” button.
- Next ‘Form 15CA’ option is to be chosen from the dropdown list and click on ‘Continue’.
- After submitting all the forms, a window shows the Part of the Form 15CA is to be choosed based on the most suitable to the present situation.
- Based on which part of the Form 15CA is selected, the applicable fields will need to be filled. The common important details in the Form 15CA include: –
- a) Name of the Remitter
- b) Address details
- c) Contact information
- d) Residential status of the Remitter
- e) Name of the recipient of the remitter
- f) PAN (if available)
- g) Details of remittance
- h) Details of TDS
- i) Verification of the form
- If the person is not able to finish the form quickly, there is a “Save Draft” option that throws a lifeline in that regard, so as to not inconvenience the person of filling up all the information again.
- On completion of the form, the “Submit” button is to be clicked upon.
- The next page will have the “Success” message, that is if the the form is submitted successfully.
- View and Withdrawal of Form 15CA
- a) To view Form 15CA, go to “My Account,” then “View Form 15CA.”
- b) Withdrawal – While on the View page, under the Status dialogue, there will be a “Withdraw Form 15CA” option. This option is available only within 7 days of the submission of the form.
- The “Add CA” field has to be filled first.
- In the “My Account” tab, the “Add CA” choice is given to you , chose it.
- Here, the Membership Number of the CA has to be filled.
- The Form number is to be filled next as 15CB.
- Since the CA has now been added successfully, the rest of the 15ca cb procedure may be completed by the CA himself.
- The user account of the CA must be registered on the site as a CA and not as a normal account.
- The Form 15CB Utility must be downloaded from the “Downloads” page. This is because the.xml file must be uploaded in order for the Form 15CB to be submitted successfully.
- Once the download is complete, the .xml file has to be completed offline and ready for upload.
- On the site, under the “e-File” option, click on the “Upload Form” tab and enter the following details: –
- a) PAN of the Assessee
- b) PAN of the CA
- c) Form Name – 15CB
- d) Filing Type – Original
- Next, the completed .xml file is to be uploaded and generated through the Utility.
- The DSC Management Utility must be downloaded as well. This is beneficial in uploading the Digital Signature File in order for the submission to be complete in all situations.
- Click on the “Submit” button and wait for the Success page.
- View the 15ca cb form
- a) Once the form 15ca cb has been uploaded and successfully submitted by the CA, the assessed may then log in and take a look at the form under the “Worklist” tab by choosing the “For Your Information” button click it.
- B) The status of the Form will be showcased as the case.
Circumstances where Form 15CB is not required:
In the following instances, Form 15CB is not needed. But, Form 15CA is to be uploaded mandatorily.
- When remittance does not pass Rs 5,00,000 (aggregate in a financial year).
- When an application is addressed to the Assessing Officer by the person getting the income to deduct tax at a low rate or subtract no tax at all and a Certificate is received in this respect.
- When the person accountable for making the payment holds that the whole of the remittance is not taxable and makes an application to the Assessing Officer to impose tax only on the taxable portion an Order is received from the Officer in this respect.
Circumstances in which both form 15ca cb are not needed:
There is a List of 33 places where form 15ca and cb are not needed as per the Income Tax Rules:
|Serial No.||Purpose code as per RBI||Nature of Payment|
|1||S0001||Indian investment abroad (IIA) – in equity capital that is shares|
|2||S0002||IIA – in debt securities|
|3||S0003||IIA – in branches and wholly owned subsidiaries|
|4||S0004||IIA- in subsidiaries and associates|
|5||S0005||IIA – in real estate|
|6||S0011||To Non-Residents providing Loans extended|
|7||S0101||Against imports Advance payment|
|8||S0102||Payment to imports – settlement of invoice|
|9||S0103||Imports by diplomatic missions|
|11||S0190||Imports under Rs.5,00,000 – (For use by ECD offices)|
|12||SO202||Payment for operating expenses of Indian shipping businesses running in abroad|
|13||SO208||Operating expenses of Indian Airlines companies functioning abroad|
|14||S0212||Passages abroad Bookings – 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 (involves fees, hostel expenses etc.)|
|21||S0501||Construction of projects abroad by Indian business with import of goods at project site|
|22||S0602||Freight insurance – linking to import and export of goods|
|23||S1011||Payments for maintenance of abroad offices|
|24||S1201||Maintenance of Indian embassies abroad|
|25||S1202||Remittances through foreign embassies in India|
|26||S1301||Remittance by non-residents for family maintenance and savings|
|27||S1302||Remittance to personal gifts and donations|
|28||S1303||Remittance to do donations in religious and charitable institutions abroad|
|29||S1304||Remittance towards grants and donations to other Governments and charitable institutions well-known by the Governments|
|30||S1305||Contributions or donations by the Government to global institutions|
|31||S1306||Remittance to payment or refund of taxes|
|32||S1501||Refunds or rebates or decrease in invoice value on account of exports|
|33||S1503||Payments by residents for worldwide bidding.|
In all other instances, if a remittance is made outside of India, the person making the remittance will obtain s certificate in 15ca cb form and, once received, will submit Form 15CA to the government online.
Now for all of this you will have to hire chartered Accountants for your 15ca cb procedure, audit and submission. Now you can either Hire CA Online or hire Chartered Accountants offline through your personal methods.
To hire CA online you can go to Google and search up “How to hire CA online” and you’ll easily find various websites that provide Online CA Services.
The process of filing 15ca cb form isn’t as hard as you think, you’ll be guided through the whole process and most of the 15ca cb procedure will be handled by the CA you hire online or offline.
What is the 15CA CB certificate?
Any payment made to a non-resident or a foreign company is directed to different rules and regulations. As per terms of Section 195 of the Income-tax Act,1961 any person liable for paying money to a non-resident including a foreign company shall subtract income tax for payment made to a non-resident.
The remitter making payment to non-resident need to provide an undertaking in Form 15CA including the information describing the payment of such sum along with a certificate attested by Chartered Accountant in Form 15CB.
Why Form 15CB is required?
In Form 15CB, a CA’confirms details of the payment, rate of tax subtracted at source (TDS), and TDS subtraction as per section 195 of the income-tax Act, if any Double Tax Avoidance Agreement (DTAA) is applicable.
What is meant by Form 15CA and 15CB?
The deduction of income tax from payments made to non-residents is mandated by Section 195 of the Income Tax Act of 1961. An undertaking (in Form 15CA) and a Chartered Accountants Certificate (in Form 15CB) must be provided by the person making the remittance to a non-resident.
How do I get a 15CA CB?
Step 1 – Sign in to e-Filing, Go to Worklist -> For Your Information.
Step 2 – Form 15CB offered by CA is presented here. Step 3 – Click on the “View Form” link to see the Uploaded Form details. The state of the form on a submission must seem as “Submitted”.
Is Form 15CB mandatory?
Form No. 15CB will only be needed for payments given to non-residents, that are taxable and if the payment passes Rs. 5 lakhs.