Changes introduced in procedures related to furnishing of Form 15CA and 15CB

CA Prateek Garg , Last updated: 21 December 2015
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CBDT vide its notification no 93/2015 dated 16th December 2015 substituted the old rule 37BB with entirely new rule 37BB. The new rule 37BB incorporates the following procedures for furnishing of declarations on foreign payments.

FURNISHING OF FORM 15CA

Information in Form 15CA, is to be furnished by any person who is responsible for making any payment –

1. To a non resident person, not being a company OR
2. To a foreign company

Information it to be furnished in form 15CA as follows –

In Part A of 15CA	Payment to be made is chargeable under this act Amount of payment (or aggregate of payment during FY) does not exceed Rs. 5 Lakhs.
In Part B of 15CA	Payment to be made is chargeable under this act Amount of payment (or aggregate of payment during FY) exceeds Rs. 5 Lakhs. Payer has obtained a Certificate from assesssing officer u/s 197 Order from Assessing Office u/s 195(2) or 195(3)
In Part C of 15CA	Payment to be made is chargeable under this act Amount of payment (or aggregate of payment during FY) exceeds Rs. 5 Lakhs. Payer has obtained a certificate in Form 15CB from a Chartered Accountant
In Part D of 15CA	Payment to be made is not chargeable under this act Note: However declaration not required if RBI approval is not required. See “EXEMPTION FROM FURNISHING OF DECLARATION“

EXEMPTION FROM FURNISHING OF DECLARATION

Payer of foreign payment do not required to furnish Form 15CA if –

1. Payment to be made is not chargeable under the provision of Income Tax Act 1961 AND

2. Either of following is True

Remittance is made by an individual and it does not require prior approval of RBI under the provision of FEMA, OR
Remittance is of nature included in Specified List

SPECIFIED LIST

Specified List under new rule includes all entries of specified list under old rule. In addition new list also include some new payments.

Sl. No.	Purpose code as per RBI	Nature of payment
(1)	(2)	(3)
1	S0001	Indian investment abroad -in equity capital (shares)
2	S0002	Indian investment abroad -in debt securities
3	S0003	Indian investment abroad -in branches and wholly owned subsidiaries
4	S0004	Indian investment abroad -in subsidiaries and associates
5	S0005	Indian investment abroad -in real estate
5 NEW ENTRIES – GIVEN IN THE END
11	S0011	Loans extended to Non-Residents
12	S0202	Payment- for operating expenses of Indian shipping companies operating abroad.
13	S0208	Operating expenses of Indian Airlines companies operating abroad
14	S0212	Booking of passages abroad -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 (including fees, hostel expenses etc.)
20	S0401	Postal services
21	S0501	Construction of projects abroad by Indian companies including import of goods at project site
22	S0602	Freight insurance – relating to import and export of goods
23	S1011	Payments for maintenance of offices abroad
24	S1201	Maintenance of Indian embassies abroad
25	S1202	Remittances by foreign embassies in India
26	S1301	Remittance by non-residents towards family maintenance and-savings
27	S1302	Remittance towards personal gifts and donations
28	S1303	Remittance towards donations to religious and charitable institutions abroad
29	S1304	Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30	S1305	Contributions or donations by the Government to international institutions
31	S1306	Remittance towards payment or refund of taxes.
32	S1501	Refunds or rebates or reduction in invoice value on account of exports
33	S1503	Payments by residents for international bidding

5 NEW ENTRIES
7	S0101	Advance payment against imports
8	S0102	Payment towards imports-settlement of invoice
9	S0103	Imports by diplomatic missions
10	S0104	Intermediary trade
11	S0190	Imports below Rs.5,00,000-(For use by ECD offices)

QUARTERLY STATEMENT TO BE FURNISHED BY AUTHORISED DEALER

Under the new procedures authorised dealers are also required to furnish a quarterly statement for each quarter of the financial year. A new Form 15CC is notified in this behalf.

PROCEDURE FOR FURNISHING OF DECLARATION

Procedure for Form 15CA

At first information in Form 15CA shall be furnished electronically (With or Without Digital Signature) in accordance with the procedures, formats and standards to be specified by the Principal DGIT(S)

Thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment. Printout is to be signed by the remitter if E Form was furnished without Digital Signature.

Procedure for Form 15CB

Certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal DGIT(s)

Procedure for Form 15CC

Quarterly statement in Form 15CC is to be furnished electronically under digital signature within 15 days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal DGIT(S)