Form no. 15ca and 15cb

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 I import the goods for my business from bangkok. At the time of remittance of payment my banker asked for submit form 15CA online and 15CB from your CA. it is applicable w.e.f. 01-11-2013 on all type of remittance. Please guide me it is required or not.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 November 2013 Few banks have started asking for Form 15CA and Form 15CB sighting RBI circular of 2007 “Remittances to non-residents – Deduction of tax at source“

CBDT Circular clearly states ” Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provision of the Act, shall furnish the following information” (in form 15CA and Form 15CB)

Payments made against Import Purchases constitutes Business Income of the Overseas Supplier and is taxable in India only if it is attributable to a Business connection/Permanent Establishment in India as per Section 9(1)(i) and respective Double Tax Avoidance Agreement. Thus, in absence of any income chargeable to tax in India there cannot be any application of Section 195 & form 15CA and Form 15CB is not applicable for remittances towards import payments.

Few banks are taking a declaration from Importers in their forwarding letter that given Import payment amount is non chargeable to tax in India and carrying out transaction without Form 15CA and Form 15CB.

Source: Sanjay mandvia http://buyerscredit.wordpress.com/2013/08/14/revised-forms-15ca-15cb-payment-to-non-resident/

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Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 Thank you sir.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 November 2013 you are welcome.

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