Post below article CBDT has revised rules for form 15CA and Form 15CB effective from April 01, 2016. Refer article: Form 15CA and Form 15CB not Required for Import Payments
In revised notification issued by CDBT on 16th December 2015, effective 01’st April 2016, import payment has been made part of exempted list. Hence forth Form 15CA and Form 15CB will not required for the same during import transactions.
Addition to exempted List
|Purpose Code||Nature of Payment|
|S0101||Advance Payment against Imports|
|S0102||Payment towards Imports – Settlement of Invoice|
|S0103||Imports by Diplomatic Missions|
|S0190||Imports below 5,00,000 (For use by ECD offices)|
In earlier article “Revised Form (15CA, 15CB) and Rules for Payment to Non Resident“, we had discussed that Form 15CA and Form 15CB is applicable only on those payment which were chargeable to tax.
In Finance Bill 2015, a new sub-section 6 has been added to Section 195
In section 195 of the Income-tax Act, for sub-section (6), the following sub-section shall be substituted with effect from the 1st day of June, 2015, namely:— “(6) 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.”.
* Details in relation to above Form is provided in rule 37BB and Form Nos. 15CA & 15CB
After section 271H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2015, namely:— “271-I. If a person, who is required to furnish information under sub-section (6) of section 195, fails to furnish such information, or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of one lakh rupees.”.
Which means from June 1, 2015 on all payments made to non resident or foreign company Form 15CA and Form 15CB is applicable; except for payments under specified list (given below).
From Buyers Credit respective, as per our interpretation, Form 15CA and Form 15CB will still not be applicable to payments made to Indian Bank Overseas Branches as parent of the same is resident and above clarification hold true only for non-resident, (not being a company), or to a foreign company. Further details on the same can be found in article ” Form 15CA & Form 15CB not Applicable on Interest Payment to Indian Bank Overseas Branches
|Sl.No.||Purpose code as per RBI||Nature of payment|
|1||S0001||Indian investment abroad -in equity capital (shares)|
|2||S0002||Indian investment abroad -in debt securities|
|3||S0003||Indian investment abroad -in branches and wholly owned subsidiaries|
|4||S0004||Indian investment abroad -in subsidiaries and associates|
|5||S0005||Indian investment abroad -in real estate|
|6||S0011||Loans extended to Non-Residents|
|7||S0202||Payment- for operating expenses of Indian shipping companies operating abroad.|
|8||S0208||Operating expenses of Indian Airlines companies operating abroad|
|9||S0212||Booking of passages abroad -Airlines companies|
|10||S0301||Remittance towards business travel.|
|11||S0302||Travel under basic travel quota (BTQ)|
|12||S0303||Travel for pilgrimage|
|13||S0304||Travel for medical treatment|
|14||S0305||Travel for education (including fees, hostel expenses etc.)|
|16||S0501||Construction of projects abroad by Indian companies including import of goods at project site|
|17||S0602||Freight insurance – relating to import and export of goods|
|18||S1011||Payments for maintenance of offices abroad|
|19||S1201||Maintenance of Indian embassies abroad|
|20||S1 202||Remittances by foreign embassies in India|
|21||S1301||Remittance by non-residents towards family maintenance and-savings|
|22||S1302||Remittance towards personal gifts and donations|
|23||S1303||Remittance towards donations to religious and charitable institutions abroad|
|24||S1304||Remittance towards grants and donations to other Governments and charitable institutions established by the Governments|
|25||S1305||Contributions or donations by the Government to international institutions|
|26||S1306||Remittance towards payment or refund of taxes.|
|27||S1501||Refunds or rebates or reduction in invoice value on account of exports|
|28||S1503||Payments by residents for international bidding|
- Finance Bill 2015
- Analysis of Form 15CA & 15CB requirement for payments made for import of goods – Article from Tax Guru
- Section 195 of Income Tax Act 1961
- Revised Form 15CA Format
- Revised Form 15CB Format, Excel Format of Revised Form 15CB
- NOTIFICATION 67/2013 [SO 2659(E)] : Income-tax (Fourteenth Amendment) Rules, 2013 – Substitution of Rule 37BB and Form Nos. 15CA and 15CB Dated : 02-09-2013
- CBDT-Substitution of Rule 37BB and Form 15CA-15CB (Notification No 58/2013): Dated: 05-08-2013
- Form 15CA (Online Filling) (Follow process given in article)
- Income Tax Circular : Remittances to non-residents: Dated: 29-06-2009
- Procedure for furnishing information in Form 15CA and Form 15CB.
- Form 15CA and 15CB under Section 195 of Income Tax.
- Form 15CA & 15CB Not Applicable on Interest payment to Indian Bank Branches.
- Section 9(1)(i).
- Tax Residency Certificate Not Required in Prescribed Format.
- Country-wise Double Taxation Summary Chart on Interest
24 thoughts on “Form 15CA & Form 15CB applicable on All Payment”
whether raw material in the course of regular imports are covered under 15CA/CB for which NIL TDS has to be obtained ? can you please elobrate waiting for this post eagerly
Yes. Post Finance Bill 2015, as per my interpretation it will get covered under Form 15CA and Form 15CB.
As per the new rule importers are required disclose information of foreign remittance by submitting Form 15CB & Form 15CA to the Bank.
In the connection, I request you to throw some light on the below 2 points:
1) Instead of making payment from own account if Importer is availing Buyers Credit for the period of 3 years (As per sanction & RBI guidelines) then when exactly form 15CB & 15CA need to be submitted.
Case 1 – At the time of making payment to Supplier by availing buyers credit.
Case 2 – At the time of making final repayment of Buyers Credit (Afeter 3 years from the date of shipment)
2) If Case 2 is applicable & Buyers credit is availed from Indian PSU Bank, then do we need comply with the aforesaid requirement.
1. While making payment to suppliers Form 15CA and Form 15CB is required along with A1 form. Irrespective buyers credit is taken or not.
2. Incase repayment / interest payment for buyers credit
A. Foreign Bank or subsidiary of Indian Bank: Form 15CA and Form 15CB is required
B. Indian Bank overseas Branch: As per our interpretation not required.
If a company in India purchase any product from a foreign company ( Manufacturer) Form 15CA / 15CB is required along with Form A1, Invoice, Bill of entry.
As per new provision in Finance Bill 2015, yes it will be required.
If a person having NRO account , old FD matured and wanna to invest in new FD , still their is requirement to file form 15ca and 15cb (both the transactions are in INR)???
Form 15 CA n 15 CB is required for purchase of goods?
some CA’s told me that it is required but some CA’s told me it is not required because this form required only for services. 15 CA n 15 CB is required for DTAA benefit. lower or zero deduction of TDS. but if we are importing goods then why this form is required?
Other than exempted list, Form 15CA and Form 15CB is required on all payments including import payment post amendment made in last Finance Bill 2014
Is there any limit to which extent these forms are not required.Soppose anyone want to pay $50 against commission even then one has to fill form 15 CA/15CB.
As commission payment does not form a part of 28 exempted list, Form 15CA and Form 15CB is required. Incase your overall payment does not exceed Rs. 2.5 lacs in a year, than transaction can be done based on only form 15CA.
Further details refer article: REVISED FORMS (15CA, 15CB) AND RULES FOR PAYMENT TO NON RESIDENT
Is 15CA and 15CB required only for foreign remittance or in cases where cheque is issued in India and deposited into an account held by an NRI also (for purchase of property from NRI). My doubt is because sub-section (6), just says for paying to a non-resident, it doesn’t specifically say for foreign remittances.
15CA AND 15CB are required when the amount is paid overseas or to the parties NRE account but if paid in their NRO account it is not required.
is 15 ac cb required if we purchase goods online (for example through amazon )
I have made Advance payments for import of goods without submitting Form 15CA & CB. Can I submit the Forms now.
Yes, as per new guidelines effective from 01’st April 2016, advance payment forms part of exempted list. Please below article for further details.
FORM 15CA AND FORM 15CB NOT REQUIRED FOR IMPORT PAYMENT
We have purchased spare parts from Australia on May-16 & now we need remit amount to supplier.
Please help me which form i need to be submit to bank.
2. Shipping Documents
3. Form A1
We are indian based company selling our product on amazon in United Kingdom. We are taking service of a UK based company which files UK VAT for us. Now we have to pay this UK company for their services. Now whether we require to submit 15CA/CB or not.
why not form 15CA and 15 CB in this case?
whether loan to non resident, such transaction applicable to Form 15CA & 15Cb
payment to LinkedIn for subscription charges for a particular month through credit card. Is in this case also form 15CA or 15 CB required?
If you can help me out with following query :
Query A) If Company pays to NRI through Credit Card (Credit Card is in the name of Company). Is Form 15CA/15CB filing applicable to such Company?
Query B) If Company pays through its Employee’s Credit Card to NRI (Reimbursement paid to Employee). Is Form 15CA/15CB filing applicable to such Company?
Query C) If Company pays to NRI through Paypal, etc. Is Form 15CA/15CB filing applicable to such Company?
Indian based company made payment to us based institute (GIA LAB) for certifying his diamond. now this payment below $1500.
Here in this case form 15CB not required but bank person ask for that and what information file in form. US based institute not liable to tax in india.
What detail shold file under DTAA TDS rate ?? and what reason should mention in it ??