All about Form 15CA and Form 15CB

Q. What is Form 15CA and Form 15 CB ?

A. Form 15 CA is a declaration made by a resident regarding any remittance made to a non resident outside India that taxes has been deducted before making the payment.

Form 15 CB Chartered Accountant certifies the nature and purpose of remittance, TDS rate, date of deduction of TDS, applicability of Double taxation avoidance Agreement and similar related particulars

Q. When does it become applicable?

A. Form 15 CA - When the remittances are chargeable to tax under the Income Tax Act, 1961.

Form 15 CB – When certificate from a CA is required and remittances exceed INR 5 Lakh.

Q. What are the parts of Form 15CA & form 15 CB?

A    Form 15 CA 

Form 15 CB

• A. Details of Remitter

1. Remitter’s Name

2. Remitter’s Address

3. Remitter’s PAN Number

4. Principal Place of Business of the Remitter

5. E-Mail Address and Phone No. Of Remitter

6. Status of the Remitter (Firm/Company/Other)

• B. Details of Remittee

1. Name and Status of the Remittee

2. Remittee’s Address

3. Nationality of the Remittee i.e. Place Where Remittance Is Made

4. Business Portfolio of the Remittee

5. Principal Place of the Remittance

• C. Details of the Remittance

1. Country to Which Remittance Is Made

2. Currency in Which Remittance Is Made

3. Amount of Remittance in Indian Currency

4. Proposed Date of Remittance

5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)

• D Bank Details of the Remitter

1. Name of Bank of the Remitter

2. Name of Branch of the Bank

3. BSR Code of the Bank

• E. Others

1. Father’s Name of the Signing Person

2. Designation Of The Signing Person

Q. When Form 15CA & CB not required?

A.  -  Individuals making remittances where RBI approval not required

  - Rule 37BB mentions 33 items of payment which do not require compliance and reporting.

Q. Summary of provisions 

Q. How to decide the taxability?

A.       Section 5 – to understand the scope of income

Section 9 – to understand the taxability of Business income, Capital gains, Salary income, Interest income, royalty etc.

DTAA – to understand whether a lower tax rate is available as per Double taxation Agreement

Q. What is penalty for non compliances of Form CA & CB?

A    As per Section 271- I, penalty arises for two circumstances

-        Failure to furnish Form 15CA & CB

-        Furnishing of inaccurate information in Form 15CA & CB

Penalty = upto INR 1 Lakh

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