Rule 37BB Income-tax Rules : payment to a non-resident

By | June 10, 2016
(Last Updated On: June 10, 2016)

Rule – 37BB Income-tax Rules

(Rule 37BB substituted by the Income-tax (Twenty First Amendment) Rules, 2015, w.e.f. 1-4-2016)

Furnishing of information for payment to a non-resident, not being a company, or to a foreign company.

37BB . (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)
12SO202Payment for operating expenses of Indian shipping companies operating abroad
13SO208Operating 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).]

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