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15ca/15cb


(Guest)

As per rule 37BB

1. 15CB certificate is taken from CA.

2. On the basis of above said certificate form 15CA is filled online and requiste receipts are generated and signed by person authorized to sign ITR.

3. Then both 15CA/15CB are submitted to bank and only after that bank makes requested payment

Query is

Generally 15CA/15CB certificates are taken one or two days prior to actual date of payment. This is due to some practical reasons such as availability of CA and of authorized signatories etc. So there is always some difference in dollar conversion rate on the date of 15CA/CB certificates and dollar rate on actual date of payment.  So in the above scenario amount in INR mentioned in 15CA/CB is somewhat different from amount in INR actually remitted. All other particulars remaining the same.

Is it above shall be construed as wrong submission of data in 15CA/15CB.

Does it makes any difference if remittances are made regarding import of material.

 


 14 Replies

Manoj B. Gavali (Tax Professional and in Service)   (1537 Points)
Replied 27 June 2015

Hi,

 

There would not be any problem if there is difference in INR value as per FOrm 15CA/15CB vis a vis amount actually remitted. Form 15CA a frm 15CB is to ensure whether applicable TDS has been deducted before remittance being made and also for recording of all foreign remittance with Income Tax Authorities. Anyways form 15CA mentioned net amount after TDS in foreign currency only and not in INR. SO there would not be any difference as your Form A2 net remittance USD amount and net remittance as per Form 15CA would be same. Earlier, before modification in Form 15CA, there was a clause to mention Net remittance amount in foreign currency as well as in INR. However, new form only mentions Net remittance in Foreign CUrrency.

Hope this solves your query.

 

Thanks and Regards,

Manoj B. Gavali

 

 

2 Like

Milind M. Kulkarni (Practicing CA) (542 Points)
Replied 27 June 2015

I agree with Mr. Manoj Gavali. Main purpose of forms 15CA and 15CB is to ensure that TDS is made correctly before foreign remittances. There is bound to be small difference between INR value mentioned in 15CB certificate and actual INR being remitted, since date of certificate and actual remittance dates are different, which is well accepted.

 

However, please also check with your bank, since some banks insist on their forex rate only to be taken and mentioned in 15CB certificate to ensure that INR values do not differ. In such case, you will have to take the forex rate from your bank instead of from RBI web site (to be mentined on 15CB) at which, it will actually remit the amount and 15CB normally would be of the same date or at the most 1 day before the date of payment.

1 Like

chandrakanth ramoji (Others) (23 Points)
Replied 29 June 2015

i was sending money to my daughter for education expenses in US on an education loan. vijaya bank overseas branch asked for 15 ca & cb. earlier they never asked. has the rule been changed to include education expenses. thanks in advance

Manoj B. Gavali (Tax Professional and in Service)   (1537 Points)
Replied 29 June 2015

Hi,

Form 15CA and 15CB not required for any foreign remittance towards education purpose (inc. fees and hostel expenses) as this type of remittance falls within exception list of remittance on which requirement of Form 15CA and 15CB has been waived off. Enclosing herewith relevant notification no.67 dated 2nd Sept, 2014. Please check entry no. 14 on page no.11 which mention travel for education is exempt from provision of Form 15CA and 15CB.

Hope this solves your query.

 

Thanks and Regards,

 

Manoj B. Gavali

 

 


Attached File : 213302 20150629100351 920110000000000049.pdf downloaded: 191 times

chandrakanth ramoji (Others) (23 Points)
Replied 29 June 2015

Thank you Mr Manoj.... after your reply i checked with Vijaya Bank. The overseas branch says from June 1 2015 they have made it mandatory. could please let me know if there is any circular to that effect. Thanks in advance

Manoj B. Gavali (Tax Professional and in Service)   (1537 Points)
Replied 29 June 2015

Hi,

W.e.f 1st June 2015, Penal provision (New section 271-I) for not furnishing Form 15CA and Form 15CB has been introduced under the Income tax act, 1961.

"271-I. If a person, who is required to furnish information under sub- section (6) of section 195, fails to furnish such information; or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of one lakh rupees."

Section 195(6) read as under :

"Section 195(6) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed under Rule 37BB of The Income Tax Rules,1962."

Rule 37BB read as below :

"

37BB . (1) 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 provisions of the Act, shall furnish the following, namely:—

(i)   the information in Part A of Form No.15CA, if the amount of payment does not exceed fifty thousand rupees and the aggregate of such payments made during the financial year does not exceed two lakh fifty thousand rupees;
(ii)   the information in Part B of Form No.15CA for payments other than the payments referred in clause (i) after obtaining—
(a)   a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288; or
(b)   a certificate from the Assessing Officer under section 197; or
(c)   an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195.

(2) The information in Form No. 15CA shall be furnished by the person electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.

(3) An income-tax authority may require the authorised dealer to furnish the signed printout referred to in sub-rule (2) for the purposes of any proceedings under the Act.

(4) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture, transmission of data and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner specified.

Explanation 1.—For the purposes of this rule, "authorised dealer" means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).

Explanation 2.—For the removal of doubts, it is hereby clarified that for payments of the nature specified in column (3) of the specified list below, no information is required to be furnished under sub-rule (1).

SPECIFIED LIST

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
6 S0011 Loans extended to Non-Residents
7 S0202 Payment for operating expenses of Indian shipping companies operating abroad.
8 S0208 Operating expenses of Indian Airlines companies operating abroad
9 S0212 Booking of passages abroad - Airlines companies
10 S0301 Remittance towards business travel.
11 S0302 Travel under basic travel quota (BTQ)
12 S0303 Travel for pilgrimage
13 S0304 Travel for medical treatment
14 S0305 Travel for education (including fees, hostel expenses etc.)
15 S0401 Postal services
16 S0501 Construction of projects abroad by Indian companies including import of goods at project site
17 S0602 Freight insurance - relating to import and export of goods
18 S1011 Payments for maintenance of offices abroad
19 S1201 Maintenance of Indian embassies abroad
20 S1202 Remittances by foreign embassies in India
21 S1301 Remittance by non-residents towards family maintenance and savings
22 S1302 Remittance towards personal gifts and donations
23 S1303 Remittance towards donations to religious and charitable institutions abroad
24 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
25 S1305 Contributions or donations by the Government to international institutions
26 S1306 Remittance towards payment or refund of taxes
27 S1501 Refunds or rebates or reduction in invoice value on account of exports
28 S1503

Payments by residents for international bidding. ]

"

Therefore, Section 271-I shall be read in consonance with Rule 37BB. COmbined reading of this provisions provides that Form 15CA and 15CB required for all transaction provided it doesnt fall within the exception list (see above table) as mentioned under Rule 37BB. Remittance for education purpose falls within purview of exception list and therefore no need for Form 15CA and 15CB.

 

Thanks and Regards,

Manoj B. Gavali

 

chandrakanth ramoji (Others) (23 Points)
Replied 29 June 2015

Dear Mr. Manoj

I spoke to Vijaya Bank overseas division. They said that the latest gazette notification has made 15ca and 15cb mandatory for all remittances made overseas, irrespective of the quantum of amount and the purpose sent. It seems the bankers had a meeting recently in Mumbai and concurred that they would comply with it. There is no exception for funds transfer for education overseas. 

 

Thanks and regards

Chandrakanth

Shashank Upadhyay (Students) (288 Points)
Replied 30 June 2015

Mr. Chandrakanth I too was involved in same kind of transaction where one of my client was sending some remittance to his son in USA for higher education nd again the bank, giving reference of same notification, was asking for form 15Cb nd CD. However main problem arises when TDS details are to be furnished as no TDS liability arises on this transaction. As it was very urgent for our client, we entered "0" in TDS column nd filed form 15CA part B as there is no required field to be filled when non taxable remittances are made.

Vijendran R (SR AUDIT OFFICER (Retd))   (44 Points)
Replied 30 July 2015

Though the amendment to Section 195(6) of the IT Act, 1961 has been made in the Finance Bill, Rule 37BB has not been amended and the requirement continues to be  for remittances chargeable to tax only.  Moreover, as rightly indicated above, for all the 28 exempted items, 15CA/CB cannot be insisted upon till Rule 37BB is amended by way of a notification.  

 

Vijendran R

 

lnreddy gowreddy (4 Points)
Replied 15 October 2019

Is form 15ca&15cb applicable for recruitement expenses

lnreddy gowreddy (4 Points)
Replied 15 October 2019

Is form 15ca&15cb applicable for recruitement expenses?

Suresh Thiyagarajan (Student) (3971 Points)
Replied 15 October 2019

1. If such recruitment expenses are more than Rs. 5 lakhs and TDS is applicable on the same then both form needs to be submitted by the payer. 
Please correct me if the above solution has an alternative view. 

Renuka K (full time practice) (41 Points)
Replied 21 January 2021

Sir please help me in resolving the issue pertaining to 15 CB. The matter is as per item No.9 ( i&ii).Taxability under the provisions of Income Tax Act (withou considering DTAA) i.is remittance chargeable to tax in India ii. if not reason thereof I have answered for point no (i) as NO reason (ii) transfer of fund to own overseas account. The bank is not agreeing. they need the source of fund to be declare there. please give suggestions

Milind M. Kulkarni (Practicing CA) (542 Points)
Replied 22 January 2021

Originally posted by : Renuka K
Sir

please help me in resolving the issue pertaining to 15 CB. The matter is as per item No.9 ( i&ii).Taxability under the provisions of Income Tax Act (withou considering DTAA) i.is remittance chargeable to tax in India ii. if not reason thereof

I have answered for point no (i) as NO
reason (ii) transfer of fund to own overseas account.
The bank is not agreeing. they need the source of fund to be declare there.

please give suggestions
 

In this case, simply because the remitter wants to transfer funds to his own foreign bank account, does not make it non-taxable. Please ask the client about his sources of deposits in NRO Account. If they are from taxable income sources in India, please calculate his tax liability, ask him to pay advance tax and after checking his tax payment challan, you can mention in form 15CB whether taxable in India as NO with reason that applicable taxes have already been paid. If funds are to be transferred from NRE Account, please ask the Bank to transfer the funds immediately as NRE Account funds are received only from foreign sources and interest on it is exempt.


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