FILING OF FORM 15 CA

What is Form 15 CA and 15 CB ?

• As per Section 195 of Income tax Act, 1961, every person liable for making a payment to non-residents shall deduct TDS from the payments made to non-residents if such sum is chargeable to Income tax and form 15CA and 15CB are the declaration for the same. A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online. In some cases, a Certificate from Chartered Accountant in form 15CB is required after uploading the form 15CA online.The furnishing of information for payment to non- resident , not being a company, or to a foreign company in Form 15CA has been classified into 4 parts –

PART A: – Where the remittance or the aggregate of such remittance does not exceed 5 lakh rupees during the F.Y. (whether taxable or not).

PART B: – Where an order /certificate u/s 195(2)/ 195(3)/197 of Income Tax Act has been obtained from the A.O. (Whether Nil rate or Lower rate Certificate).

PART C: – Where the remittance or the aggregate of such remittance exceed 5 lakh rupees during the FY.

PART D: – Where the remittance is not chargeable to tax under Domestic law.

15CB is the Tax Determination Certificate where the CA examines the remittance with regard to chargeability provisions under Section 5 and 9 of the Income Tax Act along with the provisions of Double Tax Avoidance Agreements.In form 15CB, A CA certifies details of the payment, TDS rate and TDS deduction as per Section 195 of the Income Tax Act, if any DTAA is applicable, and other details of nature and purpose of the remittance.Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To prefill the details in Part C of form 15CA, the Acknowledgement Number of e- verified form 15CB should be verified.

Documents required for Form 15CA and 15CB:-

   Details of Remitter

• Name of the Remitter
• Address of the Remitter
• PAN of the Remitter
• Principal Place of Business
• E-mail Address and Phone No. of Remitter
• Status of the Remitter (Firm/ Company/ Other)
• Digital Signature of Remitter for submission of Form 15CA (Since now the Form needs to be filed electronically)

   Details of Remittee

• Name and Status of the Remittee
• Address of the Remittee
• Principal Place of Business
• Country of the Remittee

   Details of Remittance

• Country to which the Remittance is made
• Currency
• Amount of Remittance in Indian Currency
• Proposed Date of Remittance
• Nature of Remittance as per Agreement (Invoice Copy)

   Bank Details of Remitter

• Name and Bank of Remitter
• Name of Branch of the Bank
• BSR Code of the Bank

   Documents required for DTAA Benefit

• Tax Residency Certificate (TRC) from the Remittee (Tax Registration of the Country in which remittee is registered).
• Form 10F duly filled by the Authorized person of the remittee (Self Declaration).
• No PE (Permanent Establishment) declaration. This is mandatory if the Income is a business Income.

Payment / Remittances not require 15CA & 15CB?

• Individual is not required to furnish the information in Form 15CA and 15CB for remittance which requires no RBI approval.

• List of payments (33 items) mentioned in Rule 37BB which does not require compliances and reporting through the submission of 15CA and 15CB. Those nature of remittance are as under:

Can Filed Form 15CA form 15CB be revised or cancelled?

Yes, Form 15CA can be withdrawn within 7 days from the date of Submission. The link to withdraw the submitted form will be available on the website of the Assessee concerned.

What are consequences involved for Non filing of Form 15CA 15CB?

If an assessee who is required to file Form 15CA 15CB fails to furnish the same before making remittance to a non resident, then he has shall be liable to penalty provisions under section 271I of the Income Tax Act, 1961.
Such penal provision shall be attracted even if the person furnished inaccurate information. The amount of penalty which the assessing officer may ask the assessee to pay for Non compliance is Rs.1lakhs.