A person making payment to a Non-Resident /Foreign entity is required to furnish an undertaking in Form 15CA in digital mode. In some cases, department requires a Certificate From CA, in Form 15CB to be uploaded with the Form 15CA.
The relevant provisions have been included in the Income Tax Act, 1961 from 1st April, 2016.
Rule 37BB of Income Tax Rules, 1962 provides that;
(1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, shall furnish the following, namely: —
|
(i) |
the information in Part A of Form No.15CA, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year does not exceed five lakh rupees; |
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(ii) |
for payments other than the payments referred in clause (i), the information, — |
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(a) |
in Part B of Form No.15CA after obtaining, — |
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(I) |
a certificate from the Assessing Officer under section 197; or |
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(II) |
an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195; |
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(b) |
in Part C of Form No.15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288. |
(2) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No.15CA.
CATEGORY OF TRANSACTIONS IN WHICH FORM 15CA AND FORM 15CB ARE NOT REQUIRED TO BE FILED;
[Those transactions, which are to be remitted abroad are not chargeable to tax in the hands of recipient in India]
Rule 37BB (3): Notwithstanding anything contained in sub-rule (2), no information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if, —
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(i) |
the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or |
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(ii) |
the remittance is of the nature specified in column (3) of the specified list below: |
SPECIFIED LIST
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Sl. No. |
Purpose code as per RBI |
Nature of payment |
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(1) |
(2) |
(3) |
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1 |
S0001 |
Indian investment abroad - in equity capital (shares) |
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2 |
S0002 |
Indian investment abroad - in debt securities |
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3 |
S0003 |
Indian investment abroad - in branches and wholly owned subsidiaries |
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4 |
S0004 |
Indian investment abroad - in subsidiaries and associates |
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5 |
S0005 |
Indian investment abroad - in real estate |
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6 |
S0011 |
Loans extended to Non-Residents |
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7 |
S0101 |
Advance payment against imports |
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8 |
S0102 |
Payment towards imports - settlement of invoice |
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9 |
S0103 |
Imports by diplomatic missions |
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10 |
S0104 |
Intermediary trade |
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11 |
S0190 |
Imports below Rs.5,00,000 - (For use by ECD offices) |
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12 |
SO202 |
Payment for operating expenses of Indian shipping companies operating abroad |
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13 |
SO208 |
Operating expenses of Indian Airlines companies operating abroad |
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14 |
S0212 |
Booking of passages abroad - Airlines companies |
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15 |
S0301 |
Remittance towards business travel |
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16 |
S0302 |
Travel under basic travel quota (BTQ) |
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17 |
S0303 |
Travel for pilgrimage |
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18 |
S0304 |
Travel for medical treatment |
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19 |
S0305 |
Travel for education (including fees, hostel expenses etc.) |
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20 |
S0401 |
Postal services |
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21 |
S0501 |
Construction of projects abroad by Indian companies including import of goods at project site |
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22 |
S0602 |
Freight insurance - relating to import and export of goods |
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23 |
S1011 |
Payments for maintenance of offices abroad |
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24 |
S1201 |
Maintenance of Indian embassies abroad |
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25 |
S1202 |
Remittances by foreign embassies in India |
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26 |
S1301 |
Remittance by non-residents towards family maintenance and savings |
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27 |
S1302 |
Remittance towards personal gifts and donations |
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28 |
S1303 |
Remittance towards donations to religious and charitable institutions abroad |
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29 |
S1304 |
Remittance towards grants and donations to other Governments and charitable institutions established by the Governments |
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30 |
S1305 |
Contributions or donations by the Government to international institutions |
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31 |
S1306 |
Remittance towards payment or refund of taxes |
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32 |
S1501 |
Refunds or rebates or reduction in invoice value on account of exports |
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33 |
S1503 |
Payments by residents for international bidding. |
CATEGORY OF TRANSACTIONS -AMOUNT WHICH IS TO BE REMITTED ABROAD AND CHARGEABLE TO TAX IN THE HANDS OF RECIPIENT IN INDIA.
- If remittance (or aggregate amount of remittance during the financial year) does not exceed Rs.5,00,000, Form 15CB is not required. However, undertaking in Form 15CA (Part A) should be uploaded;
- If lower TDS Certificate is received under Section 197 or order of Assessing Officer is received under Section 195 (2)/ (3), information to be uploaded in Form 15CA (Part B). Certificate from CA in Form 15CB is not required.
- In any other case of remittances outside India, the person making remittances will have to take a CA Certificate in Form 15CB and, subsequently, he/it will have to furnish an undertaking in Form 15CA (Part C).
PROCEDURE OF FILING INFORMATION AND FORMS;
Rule 37BB (4) The information in Form No. 15CA shall be furnished, —
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(i) |
electronically under digital signature in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment; or |
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(ii) |
electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment. |
Rule 37BB (5) An income-tax authority may require the authorised dealer to furnish the signed printout of Form No.15CA referred to in clause (ii) of sub-rule (4) for the purposes of any proceedings under the Act.
Rule 37BB (6) The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) under sub-rule (8).
Rule 37BB (7) The authorised dealer shall furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen 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 Director General of Income-tax (Systems) under sub-rule (8).
Rule 37BB (8) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of Form 15CA, Form 15CB and Form 15CC and shall be responsible for the day-to-day administration in relation to the furnishing and verification of information, certificate and quarterly statement in accordance with the provisions of sub-rules (4), (6) and (7).
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, author assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws and take appropriate advice of consultants. The user of the information agrees that the information is not professional advice and is subject to change without notice. Author assume no responsibility for the consequences of the use of such information
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