A guide to issue and prepare Form 15CB
Applicability and law requiring 15CB to be issued by a Chartered Accountant
As per Income Tax Act and RBI regulation 15CB is to be issued whenever a foreign payment is to be done. Income Tax act requires that 15CB should be issued whenever any taxable income is paid out of country.
If TDS is to be deducted, 15CB is compulsory. RBI requires that whenever a foreign payment is made, Income tax department should give clearance. IT department has ruled that 15CB issued by a Chartered Accountant will hold good as clearance.
Due to requirement of Reserve Bank of India (RBI), 15CB is issued even when tax is not deductible as banks have to submit the form to RBI and IT department.
Form for 15CB was revised in 2013 and now it requires more details than earlier form.
Guide to fill and issue 15CB by a Chartered Accountant
Form 15CB, in first paragraph requires disclosure of agreement, Invoice or any other document based on which Chartered Accountant (CA) is issuing 15CB. If agreement is available, CA has to mention agreement date. If invoice or other document is available then CA has to mention Invoice number or document number along with dates. Name of payer and payee is to be entered along with address.
In point A, fill the name of Payer. B1 Country of payee and currency of payee.
B2. Amount payable in foreign currency and Indian National Rupee (INR).
B3. Name of the bank and branch.
B4. BSR code of issuing branch.
B5. Date on which payment will be made (Even if exact date is not available).
B6. Nature of the payment as per DTAA between the payer(India) and payee country.
B8. Write the facts based on which you have computed the TDS applicability.
9(5(A)(a)). Mention the article number and facts based on which you have determined the TDS.
At last Chartered accountant has to mention the certificate number. Certificate number is the internal document number that CA maintains for each form 15CB issued.
Mention the signing members name, firm name, address and Membership number along with date of signing and place of issuing.
If you have any other doubts on preparation of form 15CB, do ask in replies.
Is 15CB to be issued when goods are delivered directly to party, but bill is on the name of payer? Bank is asking for form 15CB.
Yes form 15CB is to be issued because banks have to fulfill the RBI requirement.
What to mention in point 7 of 15CB "In cased the remittance is of net of cases, whether tax payable has been grossed up ?" Tick Yes or No
As i am importing machinery and for which no Tax is deductible either under I T or DTAA.