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How To File E-Form 15CA And 15CB – Applicability & Procedure

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

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 –

Part A

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.

Part B

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.

Part C

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.

Part D

Is filled when as per the domestic laws, the payment is not chargeable to tax.

Documents required for form 15ca cb

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.

Form 15CA

  1. a) Name of the Remitter
  2. b) Address details
  3. c) Contact information
  4. d) Residential status of the Remitter
  5. e) Name of the recipient of the remitter
  6. f) PAN (if available)
  7. g) Details of remittance
  8. h) Details of TDS
  9. i) Verification of the form
  1. a) To view Form 15CA, go to “My Account,” then “View Form 15CA.”
  2. 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.

Form 15CB

  1. a) PAN of the Assessee
  2. b) PAN of the CA
  3. c) Form Name – 15CB
  4. d) Filing Type – Original
  1. 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.
  2. 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.

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
10 S0104 Intermediary trade
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.)
20 S0401 Postal services
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.

Conclusion

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.

FAQ

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.

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