15ca & 15cb

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2013 Dear Sir,

Our Question is 15CA & 15CB Required for selected 28 Items or not

and 15CA & 15CB apply on Foreign payment (Foreign Publishers, Non-Taxable Books in India,Foreign Journals & Subscription).We have no pay tax on Import books.

Kindly clear the above said question .we are very thankfull to you

Sanjay

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 October 2013 for first part, no, 15CA and 15CB is not required for 28 items

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2013 Thanks Sir

There are some Question also regarding 15CA & 15CB

1.We make the Foreign Payment through Wire transfer(to Foreign Publishers for purchase of Books) along with Form A-1,So we need Submit for 15CA & 5CB or Not

2.We Make advance foreign payment via Bank Draft or Wire transfer along with Form A-2 (to Foreign Publishers for purchase of Research Journals & Subscriptions).In that Case we need to submit 15CA & 15CB or not.

3.We make a bank Gurantee paper along with form A-2 So, that we need to submit 15CA & 15CB or not

Sanjay

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2013 We still waiting for your reply

Sanjay

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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14 July 2024 Let's address each scenario regarding the requirements for Form 15CA and Form 15CB for foreign payments made by wire transfer, bank draft, or for bank guarantees:

### 1. Foreign Payment through Wire Transfer (Form A-1):

- **Nature of Payment:** Purchase of Books from Foreign Publishers.
- **Form A-1:** Form A-1 is used for remittances under various purposes, including for educational and other purposes which are permissible under the Foreign Exchange Management Act (FEMA).
- **Form 15CA & Form 15CB Requirement:**
- **Form 15CA:** Yes, Form 15CA is required for such payments. It is a declaration of remittance and is submitted electronically on the Income Tax Department's website.
- **Form 15CB:** Yes, Form 15CB is also required. Form 15CB is a certificate issued by a Chartered Accountant certifying details of the payment, TDS rate applicable (if any), and compliance with Indian tax laws.

### 2. Advance Foreign Payment via Bank Draft or Wire Transfer (Form A-2):

- **Nature of Payment:** Purchase of Research Journals & Subscriptions.
- **Form A-2:** Used for advance payments and imports. It’s typically required for making advance payments where the goods or services are yet to be received.
- **Form 15CA & Form 15CB Requirement:**
- **Form 15CA:** Yes, Form 15CA is required. Similar to the first scenario, it needs to be submitted electronically.
- **Form 15CB:** Yes, Form 15CB is required as well. The CA certifies the details of the payment and ensures compliance with tax laws.

### 3. Bank Guarantee (Form A-2):

- **Nature of Payment:** Bank Guarantee issuance.
- **Form A-2:** Used when remittances are made for certain financial services, including bank guarantees.
- **Form 15CA & Form 15CB Requirement:**
- **Form 15CA:** Yes, Form 15CA is required. Even though it’s for a service (bank guarantee issuance), it falls under the requirement for submission of Form 15CA.
- **Form 15CB:** Yes, Form 15CB is required. The CA will certify the details of the payment related to the bank guarantee.

### Summary:
- For all the scenarios mentioned (wire transfer for books, advance payments for journals/subscriptions, and bank guarantee issuance), both Form 15CA and Form 15CB are required.
- Form 15CA is a declaration submitted electronically.
- Form 15CB is a certificate issued by a Chartered Accountant certifying the details of the payment and compliance with Indian tax laws.

Ensure that these forms are filled out correctly and submitted as per the guidelines to avoid any penalties or non-compliance issues related to foreign remittances.

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