Requirement of form 15cb

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Milind Kulkarni

CA Practice

53 Points Posted on 27 June 2015

Explanation 2 to Rule 37BB of Income Tax Rules, 1962 states that for payments of the nature specified in column (3) of the specified list, no information is required to be furnished under sub-rule (1).

This means forms 15CA or 15CB need not be submitted in case payment is of the nature specified in that list (for e.g., investment in equity share capital outside India).

Revised sub-section (6) of section 195 requires form 15CA and 15CB to be submitted in all cases, whether TDS is applicable or not. With this revision, no corresponding revision has been made in Rule 37BB.

In this scenario, kindly confirm whether remittance of funds outside India to invest in equity capital of a foreign company will require issuance of form 15CB by an accountant and submitting form 15CA by the remitter.

Thanks in advance.

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Milind Kulkarni

CA Practice

53 Points Posted on 29 June 2015

49 views to this query but not a single reply? My interpretation was that though revised sub section (6) of section 195 transfers control of the transaction to Rule 37BB, which requires issuance of forms 15CB and 15CA in normal circumstances, explanation 2 to Rule 37BB specifically exempts remittance for investment in equity capital outside India from issuance of forms 15CB and 15CA. This exemption will be the deciding factor and these forms need not be issued in this case.

However, I needed confirmation from other experts before I can conclude on this.