Form 15CA and 15CB

Form 15CA and 15CB – An Introduction

National rules have been strictly implied to all the remittance of foreign nature which is done to a Non-Resident. There are certain slabs and amounts on which there is taxation. The person making a remittance has to deposit a Form 15CA online. And in the case of Form 15CB, a certificate is required from a chartered accountant. The meaning of Form 15CB is here to determine the tax deduction as per the income tax rules and also avoiding the double tax provision. TDS is again charged in the case when the remittance is taxable. The information provided in Form 15CB mainly includes the details of the remittee, details of the remitter, nature of remittance like royalty, salary, commission as per the agreement between both sides, Tax Residency Certificate and Bank details of the remitter from the remitter in case DTAA (Double Taxation Avoidance Agreement) is applicable. Earlier, the person making a remittance to Non-Resident was required to furnish a certificate in specified format circulated by RBI. Basic purpose was to collect the taxes at a stage when the remittance is made as it may not be possible to collect the tax from the Non-Resident at a later stage. Thus to monitor and track the transactions in an efficient manner, it was proposed to introduce e-filling of information in the certificates.

Section 195 of Income tax act, 1961 mandates the deduction of Income tax from payments made to Non Resident. The person making the remittance to non – resident needs to furnish an undertaking (in form 15CA) accompanied by a Chartered Accountants Certificate in Form 15CB. As per Section 195 of Income tax Act, 1961, every person liable for making a payment to non-residents shall deduct TDS from the payments made to non-residents if such sum is chargeable to Income tax then the withholding tax need to be deducted and form 15CA and 15CB are the declaration for the same. A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA to the bank. This form is submitted online. In some cases, a Certificate from Chartered Accountant in form 15CB is required after uploading the form 15CA online where TDS is required to be deducted. The furnishing of information for payment to non- resident, not being a company, or to a foreign company in Form 15CA has been classified into 4 parts –