Checklist to File Form 15CA & Form 15CB

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Nowadays Form 15CA and 15CB are of a lot importance. We
professional atleast have to issue one Form 15CB every day and form 15CA is
also to be made by the professional on behalf of the client.
Form 15CA is a Declaration of Remitter and is used as a tool
for collecting information in respect of payments which are chargeable to tax
in the hands of recipient non-resident. This is starting of
an effective Information
Processing System which may be utilized by the Income tax Department to independently track the foreign remittances
and their nature to determine tax liability. In the modern times, the system
for selection of cases into scrutiny have reduced drastically and without
scrutiny there was no check to ensure that taxable foreign remittances have
been made after deduction of tax or not. Therefore, the remittance channel i.e.
Banks have been directed to obtain Form 15CA and 15CB before making any
remittance. Authorised Dealers/ Banks are now becoming more vigilant in
ensuring that such Forms are received by them before remittance is effected
since now as per revised Rule 37BB a duty is casted on them to furnish Form 15CA
received from remitter, to an income-tax authority for the purposes of any proceedings
under the Income-tax Act and also the revised FEMA Guidelines issued in July’2014 cast duty on the banks to
ascertain the Tax Liability in each case of remittance. As per the revised RBI
Guidelines, The RBI in this regard will not issue any guidelines with respect
to deduction of tax at source on foreign remittances. Therefore the Banks are
urging the remitters to provide such Form 15CA and 15CB even in case of Import
purchases.  
Here is an attempt to make a comprehensive check list/procedure for effecive furnishing of Form 15CA and 15CB.

REQUIREMENTS FOR MAKING FORM 15CA
and 15CB

Step 1: Ascertain whether Form
15CA and CB are actually required to be made.   
           
   
As per Income Tax (Fourteenth Amendment) Rules, 2013, No
reporting in
Form 15CA and 15CB is to be made in case
of the following nature of foreign remittances w.e.f 01.10.2013
SPECIFIED LIST  
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.)
15
S0401
Postal services
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”.


Therefore no Form 15CA and 15CB are required in the
abovementioned 28 nature of foreign remittances.
Step 2:Once it is ascertained that
Form 15CA and 15CB have to be made then one should ascertain the part of Form
15CA to be filled by the assessee, by reading the following extracts of Amended
Rule 37BB; 
      
                 
Rule 37BB. (1) Any person responsible for paying to a
non-resident, not being a company, or to a foreign company, any interest or
salary or any other sum chargeable to tax 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 does not exceed fifty thousand rupees and the aggregate of such
payments made during the financial year does not exceed two lakh fifty thousand
rupees;             
(ii) the information in Part B of Form No.15CA for payments other
than the payments referred in clause (i)
Step 3:  Information to be
required from the client

A Details of Remitter  
1. Name of the Remitter
2. Address of the Remitter
3. PAN of the  Remitter
4. Principal Place of Business of the Remitter
5. E-Mail Address and Phone No. Of
Remitter
6. Status of the Remitter
(Firm/Company/Other)
B. 
Details of Remittee
1. Name and Status of the Remittee
2. Address of the Remittee
3. Country of the Remittee (Country
to Which Remittance Is Made)
4. Principal Place of the Business
of the Remittee
C. 
Details of the Remittance
1. Country to Which Remittance Is
Made
2. Currency in Which Remittance Is
Made
3. Amount of Remittance in Indian
Currency
4. Proposed Date of Remittance
5. Nature of Remittance as Per Agreement
(Invoice Copy to Be Asked From Client)
D Bank Details of the
Remitter     
1. Name of Bank of the Remitter
2. Name of Branch of the Bank
3.  BSR Code of the Bank
E.  Others 
1. Father’s Name of the Signing Person
2. Designation Of The Signing Person
F. a. Form 10f Duly Filled By the Authorised Person Of The Remittee.
b. Tax Residency Certificate From
The Remittee (Tax Registration Of The Country In Which Remittee Is Registered)
c. Certificate That The Remittee Does Not Have Any Permanent
Establishment In India. This Is Mandatory If The Income Is A Business Income
And Not Chargeable To Tax As Per DTAA If There Is No P.E In India.
This Is Required If Any Benefit Under DTAA Is Taken, Whether
By Way Of Lower Rate Of Deduction Of Tax At Source Or No Deduction Of Tax At
Source As Per DTAA.     Hope you find the above information
relevant and useful in your daily practice.

RECOMMENDED READ  Annexure 2B of DVAT Form 16

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