15CA / 15CB Filing Rules W.e.f 01.4.2016

By | April 1, 2016
(Last Updated On: January 20, 2017)

Form No 15CA / 15CB

Form No 15CA/ 15 CB

Form No 15CA / 15 CB : -The CBDT has amended Rule 37 BB of the Income-tax Rules and made following changes  relating to form No 15CA and 15CB which are applicable from today itself i.e. 1st April 2016:
Sec 195(6) states that 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.

When Form No 15CA / CB is required :

Rule 37BB of Income Tax Rules (refer Notification below)  has been amended and provides that :
The furnishing of information for payment to a non-resident, not being a company, or to a foreign company in Form 15CA has been classified into 4 parts- Part A, Part B, Part C and Part D, wherein:

Form No 15CA- Part A

Where the remittance or the aggregate of such remittances does not exceed 5 lakh rupees during the FY.  (Whether taxable or not)

Form No 15CA- Part B

Where an order/ certificate u/s 195(2) / 195(3) / 197 of Income-tax Act has been obtained from the AO. (Whether NIL rate or Lower Rate Certificate)

Form No 15CA- Part C

Where remittance is chargeable to tax under domestic law and the remittance or the aggregate of such remittances exceeds 5 lakh rupees during the FY and a certificate in Form No. 15CB from a CA has been obtained electronically. (Utility available on Income Tax Efiling Website)

Form No  15CA –Part D

Where the remittance is not chargeable to tax under Domestic Law.

When Form No 15CA / CB is not required :- 

  • if an individual is making remittance which do not requiring RBI approval under its Liberalized Remittance Scheme (LRS) or items mentioned in Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000
                         or
  • if remittance is in the nature of 33 items provided in the rule 37BB (refer below Notification). The main items are as follows:-
                       –   Indian investment in Equities or Debt securities abroad
                       –   Investment in Real estate abroad
                       –   Advance or Payment for Imports including Freight & Insurance
                       –   Remittance towards business travel
                       –   Travel for Medical Treatment
                       –   Payment for Education or Postal Services
                       –   Personal Gifts and donations
 

Key Points about Form No 15CA and 15CB

  • Form 15CA and 15CB needs to be filled electronically
  • Exemption from filling is available for 33 transactions are given in the Rule 37BB including payments for imports. 
  • Penalty of Rs. 1 lakh for each default of non-filling will be applicable.

 


Press Released relating to Form No 15CA and 15CB

Please find attached the copy of the Press Release dated December 17, 2015 for your kind perusal.


Press Release

Ministry of Finance

17-December, 2015

Furnishing of Information in Respect of Payments made to the Non-Resident

Section 195 of the Income-tax Act empowers the Central Board of Direct Taxes to capture information in respect of payments made to non-residents, whether chargeable to tax or not. Rule 37 BB of the Income-tax Rules has been amended to strike a balance between reducing the burden of compliance and collection of information under section 195 of the Act.

The significant changes under the amended Rules are:

  • No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not requiring RBI approval under its Liberalised Remmittace Scheme (LRS)
  • Further the list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.
  • A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh.

The amended Rules will become applicable from 01.04.2016.

Notification No. G.S.R. 978(E) dated 16th December, 2015 is available on the website of the Department at www.incometax.gov.in.

Notification Relating to Rule 37BB – Form No 15CA/ 15CB

NOTIFICATION NO.GSR 978(E) [NO.93/2015 (F.NO.133/41/2015-TPL], DATED 16-12-2015

[AS CORRECTED BY NOTIFICATION NO. GSR 21(E) [NO.1/2016 (F.NO. 133/41/2015-TPL)], DATED 12-1-2016]

In exercise of the powers conferred by sub-section (6) of section 195 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (21st Amendment) Rules, 2015.

(2) They shall come into force on the 1st day of April, 2016.

2. In the Income-tax Rules, 1962 (hereafter referred to as the said rules), for rule 37BB, the following rule shall be substituted, namely:—

” 37BB . Furnishing of information for payment to a non-resident, not being a company, or to a foreign company.— (1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable 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 or the aggregate of such payments, as the case may be, made during the financial year does not exceed five lakh rupees;
(ii)for payments other than the payments referred in clause (i), the information,—
(a)in Part B of Form No.15CA after obtaining,—
(I)a certificate from the Assessing Officer under section 197; or
(II)an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195;
(b)in Part C of Form No.15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288.

(2) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No.15CA.

(3) Notwithstanding anything contained in sub-rule (2), no information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if,—

(i)the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or
(ii)the remittance is of the nature specified in column (3) of the specified list below:

SPECIFIED LIST

Sl. No.Purpose code as per RBINature of payment
(1)(2)(3)
1S0001Indian investment abroad-in equity capital (shares)
2S0002Indian investment abroad-in debt securities
3S0003Indian investment abroad-in branches and wholly owned subsidiaries
4S0004Indian investment abroad-in subsidiaries and associates
5S0005Indian investment abroad-in real estate
6S0011Loans extended to Non-Residents
7S0101Advance payment against imports
8S0102Payment towards imports-settlement of invoice
9S0103Imports by diplomatic missions
10S0104Intermediary trade
11S0190Imports below Rs.5,00,000-(For use by ECD offices)
12S0202Payment for operating expenses of Indian shipping companies operating abroad.
13S0208Operating expenses of Indian Airlines companies operating abroad
14S0212Booking of passages abroad – Airlines companies
15S0301Remittance towards business travel.
16S0302Travel under basic travel quota (BTQ)
17S0303Travel for pilgrimage
18S0304Travel for medical treatment
19S0305Travel for education (including fees, hostel expenses etc.)
20S0401Postal services
21S0501Construction of projects abroad by Indian companies including import of goods at project site
22S0602Freight insurance – relating to import and export of goods
23S1011Payments for maintenance of offices abroad
24S1201Maintenance of Indian embassies abroad
25S1202Remittances by foreign embassies in India
26S1301Remittance by non-residents towards family maintenance and savings
27S1302Remittance towards personal gifts and donations
28S1303Remittance towards donations to religious and charitable institutions abroad
29S1304Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30S1305Contributions or donations by the Government to international institutions
31S1306Remittance towards payment or refund of taxes
32S1501Refunds or rebates or reduction in invoice value on account of exports
33S1503Payments by residents for international bidding.

(4) The information in Form No. 15CA shall be furnished,—

(i)electronically under digital signature in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment; or
(ii)electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.

(5) An income-tax authority may require the authorised dealer to furnish the signed printout of Form No.15CA referred to in clause (ii) of sub-rule (4) for the purposes of any proceedings under the Act.

(6) The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director- General of Income-tax (Systems) under sub-rule (8).

(7) The authorised dealer shall furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8).

(8) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of Form 15CA, Form 15CB and Form 15CC and shall be responsible for the day-to-day administration in relation to the furnishing and verification of information, certificate and quarterly statement in accordance with the provisions of sub-rules (4), (6) and (7).

Explanation.— 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).”

3. In the said rules, in Appendix-II, for Form No.15CA and Form No. 15CB, the following Forms shall be substituted, namely:—

“FORM NO. 15CA

(See rule 37BB)

Information to be furnished for payments to a non-resident not being a company, or to a foreign company

 

Form No. 15CB

(See rule 37BB)

Certificate of an accountant 1

 

Form No.15CC

(See rule 37BB)

 

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