What is Form 15CA and 15CB

Income tax department requires taxpayers to furnish certain critical information through various forms on the e filing portal. In case of foreign remittances, a person is required to have knowledge about filing of Form 15CA and Form 15CB.

In this article, we will discuss the requirements of these forms and their applicability.

Form 15CA:
Form 15 CA is required for making payments to non-residents and foreign companies. Form 15CA is filed for each remittance made by a person responsible for such remittance, before remitting the amount. Any category of taxpayer, Authorized Signatory and Representative Assessee can use Form 15CA to furnish information regarding payment made to a Non-Resident, not being a Company, or to a Foreign Company.

Form 15CA is a statement filed by the person remitting such foreign remittances in which he states that any payments made to the non-resident have been taxed.

Form 15CA has four parts as follows:

Part A – It is to be filed in case of such remittance being taxable where the total does not exceed Rs.5 lakhs.

Part B – It is to be filed when the Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer.

Part C- It is to be filled when the remittance or its aggregate exceeds Rs. 5 lakh in a financial year and that remittance is chargeable to tax. Also Form 15CB is obtained from a CA.

Part D – It is to be filed if the remittance is covered under a specific exemption.

Form 15CB:
Form 15CB is a certificate issued by the practicing Chartered Accountant to ensure that provisions of the Double Taxation Avoidance Agreement and the Income Tax Act have been complied with in respect of tax deductions while making the payments. It contains the payment details, the TDS rate, the DTAA provisions, and the compliance with Section 195 of the Income Tax Act.

Applicability of Form 15CA and 15CB:

• Form 15CA and 15CB are not required when remittance is not chargeable to tax.
• Only Part D of Form 15CA is to be filed if remittance is covered under a specific exemption list
• Only Part A of Form 15CA is to be filed if remittance is less than ₹ 5 Lakh in a financial year.
• Form 15CB and Part C of Form 15CA are to be submitted if the remittance exceeds ₹ 5 Lakh.
• Only Part B of Form 15CA is to be filed if the remittance exceeds ₹ 5 Lakh and a certificate has been obtained under Section 195(2)/195 (3)/197 of the Income Tax.

Conclusion:
Filing of form 15CA is required for making foreign remittances to non-residents outside India and to foreign companies. Whereas form 15CB is a certificate to be obtained by a practicing Chartered Accountant which includes general payment details. It is to be noted that both these forms are needed to be filed before making the remittance.

About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.