Applicability of Form 15 CA & CB

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Applicability of Form 15 CA & CB

Whether for every foreign transaction taken place with Non Residence is required to furnish in Form 15CA & 15CB?

According to Revised Rules of Income Tax,

  • Form 15CA and 15CB will be NOT be required to be furnished by an individual for remittance, which does not require RBI approval
  • List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports.
  • Form No. 15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds Rs. 5 lakhs. 

Difference Parts of Form 15CA

The furnishing of information for payment to non- resident , not being a company, or to a foreign company in Form 15CA has been classified into 4 parts –

PART A: – Where the remittance or the aggregate of such remittance does not exceed 5 lakh rupees during the F.Y. (whether taxable or not).

PART B: – Where an order /certificate u/s 195(2)/ 195(3)/197 of Income Tax Act has been obtained from the A.O. (Whether Nil rate or Lower rate Certificate).

PART C: – Where the remittance or the aggregate of such remittance exceed 5 lakh rupees during the FY.

PART D: – Where the remittance is not chargeable to tax under Domestic law.

Basic Details for uploading Form 15CA/CB

  • Details of Remitter:-

            Name of the Remitter

            Address of the Remitter

            PAN of the Remitter

            Principal Place of Business

            E-mail Address and Phone No. of Remitter

            Status of the Remitter (Firm/ Company/ Other)

  • Details of Remittee:-

            Name and Status of the Remittee

            Address of the Remittee

            Principal Place of Business

            Country of the Remittee

  • Details of Remittance:-

            Country to which the Remittance is made

            Currency

            Amount of Remittance in Indian Currency

            Proposed Date of Remittance

            Nature of Remittance as per Agreement (Invoice Copy)

  • Bank Details of Remitter:-

            Name and Bank of Remitter

            Name of Branch of the Bank

            BSR Code of the Bank

List of payments of specified nature mentioned in Rule 37BB

  • Indian investment abroad -in equity capital (shares)
  • Indian investment abroad -in debt securities
  • Indian investment abroad-in branches and wholly owned subsidiaries
  • Indian investment abroad -in subsidiaries and associates
  • Indian investment abroad -in real estate
  • Loans extended to Non-Residents
  • Advance payment against imports
  • Payment towards imports-settlement of invoice
  • Imports by diplomatic missions
  • Intermediary trade
  • Imports below Rs.5,00,000-(For use by ECD offices)
  • Payment- for operating expenses of Indian shipping companies operating abroad.
  • Operating expenses of Indian Airlines companies operating abroad
  • Booking of passages abroad -Airlines companies
  • Remittance towards business travel.
  • Travel under basic travel quota (BTQ)
  • Travel for pilgrimage
  • Travel for medical treatment
  • Travel for education (including fees, hostel expenses etc.)
  • Postal Services
  • Construction of projects abroad by Indian companies including import of goods at project site
  • Freight insurance – relating to import and export of goods
  • Payments for maintenance of offices abroad
  • Maintenance of Indian embassies abroad
  • Remittances by foreign embassies in India
  • Remittance by non-residents towards family maintenance and savings
  • Remittance towards personal gifts and donations
  • Remittance towards donations to religious and charitable institutions abroad
  • Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
  • Contributions or donations by the Government to international institutions
  • Remittance towards payment or refund of taxes.
  • Refunds or rebates or reduction in invoice value on account of exports
  • Payments by residents for international bidding.

 

 

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