What is form 15CA & 15CB under Income Tax Act, 1961

 

Summary of Form 15CA

 

1.    What is Form 15CA?

    

    a. As per Section 195, every person making a payment to Non-Residents (not being a Company), or to a Foreign Company shall deduct TDS if such sum is chargeable to Income Tax and the details are required to be furnished in Form 15CA.

      b. A person responsible for making such remittance (payment) has to submit the form 15CA, before remitting the payment. This form can be submitted both online and offline mode. In certain cases, a Certificate from Chartered Accountant in form 15CB is required before uploading the form 15CA online.

 

2.    Which part of Form 15CA do I need to fill?

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. Depending upon the case, you will need to fill the relevant part.

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

PART B: Where remittance or the aggregate of such remittances exceed 5 lakh rupees during the FY and an order / certificate u/s 195(2) / 195(3) /197 of the Act has been obtained from the Assessing Officer.

PART C: Where the remittance or the aggregate of such remittance exceed 5 lakh rupees during the FY and a certificate in Form No 15CB from an accountant has been obtained.

PART D: Where the remittance is not chargeable to tax under the Income Tax Act, 1961.

 

3.    Who is required to file Form 15CA?

As per Rule 37BB, any person responsible for paying to a Non-Resident, not being a Company, or to a Foreign Company shall furnish such information in Form 15CA.

 

4.    Is it mandatory to submit Form 15CB?

No, it is not mandatory to submit Form 15CB. Form 15CB is an event-based form to be filled only when the remittance or aggregate of remittance amount exceeds Rs 5 Lakhs during a financial year and you are required to furnish a certificate from an accountant defined as per Section 288.

 

5.    Can Form 15CA be withdrawn?

Yes, Form 15CA can be withdrawn within 7 days from submission date.

 

6.    When is Form 15CA not required to be furnished?

In accordance with sub-rule (3) of Rule 37BB, information in Form 15CA is not required to be furnished in case of following transactions:

a. Remittance is made by an individual and does not require prior approval of RBI

b. Remittance is of the nature specified under relevant purposes code as per RBI

 

7.    How do I e-Verify Form 15CA?

This form can be e-Verified using DSC or EVC. You need to e-Verify using DSC if DSC is registered. Refer to the How to e-Verify user manual to understand the step-by-step process for e-Verification.

 

8.    Can I file Form 15CA online only? When should I file this form?

This form can be filed in both online and offline modes. The Offline Utility service enables you to file Form 15CA in the offline mode. No time limit is prescribed for filing this form. However, it should be filed before the remittance is made.

 

Summary of Form 15CB

 

1.    What is Form 15CB?

Form 15CB is a certificate to be furnished by an Accountant in cases where any payment / aggregate of payments exceeding ₹5 Lakh in a FY, chargeable to income tax is made to a Non-Resident, not being a company or to a Foreign Company, and a certificate from the AO u/s 195 / 197 is not obtained. In form 15CB, a CA certifies the details of the payment, TDS rate, TDS deduction and other details of nature and purpose of remittance. In other words, Form 15CB is the Tax Determination Certificate in which the CA examines a remittance with regard to chargeability provisions.

2.    Who can use Form 15CB?

Form 15CB is accessed and submitted by a Chartered Accountant who is registered on the e-Filing portal. The CA must be assigned Form 15CA by the taxpayer in order to certify the details in Form 15CB.

3.    What is the purpose of certification in Form 15CB?

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 Taxation Avoidance Agreements (DTAA) if any.

4.    Is it mandatory to file Form 15CB before filing Form 15CA (Part C)?

Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA.

5.    Can Form 15CB be filed only in the offline mode?

Form 15CB can be filed and submitted both in online and offline mode. The Offline Utility  for Statutory Forms enable you to fill and submit Form 15CB in the offline mode.

6.    How should form 15CB be verified? Is there any time limit to submit this form?

This form can only be e-Verified using DSC. The DSC of the CA should be registered on the e-Filing portal. There is no time limit prescribed to submit Form 15CB. However, it should be submitted before the remittance is made.