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All about Form 15CA and Form 15CB

All about Form 15CA and Form 15CB

What is form 15CA ?

Section 195 of the Income tax Act, 1961 mandates deduction of income tax from payments made or to be made but credited the party already, to none residents at the rates in force.
when you are trying to pay money across international boundaries it may become more complex to collect the amount of income tax on that payment from the party to whom payment is being made. So in order to avoid this difficulty sec 195 has been in force , which talks about deduction of tax while making payments to a non resident individual PR non resident company what ever it could be.

What is form 15CB ?

The person making the payment needs to obtain a certificate from a Chartered Accountant in Form 15CB. The format of Form 15CB has been prescribed by Central Board of Direct Taxes

The person making the payment to a nonresident needs to furnish an Form 15CA followed by a Chartered Accountants Certificate in Form 15CB.

As per RBI :

Except in cases of certain personal remittances which have been specifically exempted, no payment should be made to a nonresident without furnishing an undertaking in Form 15CA accompany by Form 15CB

How to furnish form 15CA ?

Form 15CA has to be filled electronically in the website of income at ax Department.

Before furnishing form 15CA The Person making the Payment shall obtain a certificate from an accountant(Preferably a CA) in Form 15CB , Where he/she certifies details of the payment, TDS rate and TDS deduction as per section 195 of the Income Tax Act, if any DTAA (Double Tax Avoidance Agreement) is applicable, and other details like nature and purpose of the remittance.

The payer shall electronically upload the undertaking containing the remittance details to the department in form 15CA on the website of http://www.tin-nsdl.com

The print out of the Form 15CA which is furnished online should be signed by authorized signatory and submitted to the bank prior to remitting the payment along with certificate of a Chartered Accountant in duplicate in Form 15CB.

Following are the mandatory requirements to quote while furnishing this form :

1) PAN

2) TAN

3)No field is to be filled in Area code, AO type, Range code & AO number. The fields will be entered by the system after validating the PAN and/or TAN.

4) In case an invalid PAN and or TAN is filled in by the remitter, the Form will not be generated.

Conclusion

1) when remittance is towards the list of 28 items mentioned in Rule 37BB then s Form 15CA and certificate from CA in Form 15CB are not required.

2) If the remittance does not exceed Rs 50,000 (single transaction) and Rs 2,50,000 (total in a financial year) then Only Form 15CA is has to be submitted in this case. No need to obtain form 15CB.

All about Form 15CA and Form 15CB 

Gujarat VAT department has issued circular

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