Thank you for your detailed query. You're right in referring to **Section 195(6)** read with **Rule 37BB**, which governs the requirement of **Form 15CA / 15CB** for **remittances to non-residents**.
Let me clarify your questions point by point as of the latest applicable provisions.
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## ✅ **Section 195(6) and Rule 37BB: Summary**
* Any person responsible for making a payment to a **non-resident or foreign company** (whether taxable or not) must **furnish information in Form 15CA**. * In **certain cases**, a **CA certificate in Form 15CB** is also required. * **Rule 37BB** lists **33 categories of payments** that are **exempt** from Form 15CA/15CB compliance.
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## ✅ Your Specific Questions:
### 1. **Are payments to Foreign Companies for import of raw materials covered?**
❌ **No**, these are **excluded** from Form 15CA / 15CB as per Rule 37BB.
> **Rule 37BB(3), item 3**: > > > "Payment for imports" — specifically **imports of goods, including raw materials** — is **exempt** from Form 15CA/CB.
✅ No Form 15CA or 15CB is required.
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### 2. **Are payments for import of capital goods covered?**
❌ **No**, similar to raw materials, **capital goods** also fall under **“imports”**, hence:
> Also covered under **Rule 37BB(3), item 3** — **exempt** from 15CA/15CB.
✅ No Form 15CA or 15CB is required.
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### 3. **Is commission paid to foreign agents covered?**
✅ **Yes**, this is **covered**.
* Commission to foreign agents is **not excluded** under Rule 37BB. * Since it’s a **remittance to non-resident for services**, **Form 15CA is mandatory**, and **Form 15CB** is required **if the remittance exceeds ₹5,00,000** in a financial year.
> Even though the foreign agent has **no Permanent Establishment (PE)** in India and income may not be taxable under **DTAA**, you **still need to file Form 15CA (Part D)** along with **Form 10F, TRC, and a declaration**.
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## ✅ Summary Table:
| Nature of Payment | Form 15CA/CB Required? | Reason | | ------------------------------------ | ---------------------- | --------------------------------------------------------------------------------- | | Import of raw materials | ❌ No | Covered under Rule 37BB (exempt category) | | Import of capital goods | ❌ No | Also covered under Rule 37BB (exempt category) | | Commission to foreign agents (no PE) | ✅ Yes | Not exempt; income may not be taxable, but declaration and Form 15CA still needed |
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## 📌 Compliance Tip:
If the commission is **not taxable in India** due to **DTAA + no PE**, and proper documents are maintained:
* You can file **Form 15CA – Part D** (for amounts not chargeable to tax) * **Form 15CB** is **not required** in that case
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## 📂 Documents Recommended for Foreign Commission Remittance:
* **TRC (Tax Residency Certificate)** from foreign agent * **Form 10F** * **Declaration** that agent has **no PE in India** * **Copy of agency agreement or invoice**
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Let me know if you’d like:
* A sample declaration from the foreign agent * A draft of Form 15CA (Part D) * A list of all 33 exempt categories under Rule 37BB