Foreign Payments-Procedure to obtain form 15CB and filing Form 15CA
Government of India (MOF) has issued a CBDT notification S.O.2659(E) dated 2nd Sept 2013 amending the earlier notification –Income tax rules 1962 in regard to collection of Form No. 15CA and CB for all foreign exchange transaction (Remittances).
The latest change in procedure is outlined below.
The change in the process is for A2 transactions, which calls for Annex A & B under section 195 of Income tax Act, while outward remittances to non-residents.
CBDT directive: New form to be filed for all remittances to non-residents
The Central Board of Direct Taxes (“CBDT”) has, by notification No 30/2009 datedMarch 25, 2009, prescribed a new rule 37BB in the Income Tax Rules, 1962 (“the rules”) prescribing Form 15CA Part A & B and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This new rule is effective from October 1, 2013.
Finance Act, 2008 inserted a new sub section (6) to section 195 which requires the person responsible for making payment to a non-resident to furnish information relating to such payments in forms to be prescribed. The CBDT has now prescribed the rule and forms, which mandate the following:
The person responsible for making payment to non-resident should obtain a certificate from a CA (other than employee of the co) in Form No 15CB.
The remitter will then access the website – Income tax website to electronically upload the remittance details to the Income Tax department in form 15 CA - Part A and B (undertaking). The information to be furnished in form 15 CA using the information contained in Form 15CB. (Certified by CA)
The remitter will then take a printout of this filled 15CA (which will bear an acknowledgment number generated by the system) and sign it. Form 15CA - Part A and B (undertaking) can be signed by the person authorized to sign the return of income of he remitter or a person so authorized by him in writing.
Duly signed 15CA and 15CB to be submitted in 1+1 duplicate to the bank along with other documents relating to the remittance.
Procedure for filing form 15CA in Income tax website:
- Log in through company PAN and password
- Click on e-File menu and go to Prepare and submit online Form (other than ITR)
- Select Form Name as 15CA, you will be directed to page 1,
- click on right arrow for moving to next page.
- Select part A or Part B as applicable.
Download the latest form 15CB in word Form_15CB_Revised-to-be-issued-by-Chartered-Accountant.docx
In addition would like to add to all people from CA Faternity, who take this opportunity to sign the Form -15CB, be aware of the regulations laid down under the Double Taxation Avoidance agreement, the subsequent relief and the Tax Residency certificate which is mandated.
The Form-15CB is a simple form, but errors will prove costly at the time of assessment, as the reasons of mistake, forgiveness and most importantly the competancy on professional front will be challenged. ITAct1961_amndt12.pdf
I beleive this additional information will provide more insight on to the pratice. Please share / revert back with you querry or doubt on www.tikshare.com, will be glad to provide information about the same.
CA S Kamath