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» » Revised Forms (15CA, 15CB) and Rules for payment to Non Resident

In earlier article about Withholding Tax (WHT), we have discussed about the process and applicability of Form 15CA and 15CB. On 5th August, 2013 CBDT revised the guidelines on Form 15CA and Form 15CB and further amended on 02nd September 2013. Below article gives a summary of changes made.
  • Revised Forms and Amendments shall come into force on the 1st October, 2013.
  • Applicable to : Any payment including any interest or salary or any other sum chargeable to tax, to non-resident, not being a company, or to a foreign company

Changes in New Form 15CA

Part A of Form 15 CA (Form 15CB not required)
ParticularsChanges
Who Shall Fill ItTo be filled up if the remittance to non- resident or to a foreign company does not exceed Rs. 50000 per transaction and aggregate of such payments made during the financial year does not exceed Rs. 2,50,000
What information has to be filled1. Particulars of Remitter, Remittee, Remittance made and TDS
2. Mandatory to furnish PAN of Remitter, if tax is deducted then TAN of the Remitter also needs to be provided
3. Form prescribes mandatory application of provisions of Section 206AA, if remittance is chargeable to tax and PAN of remittee is not available.
4. E-mail and Phone Number of remittee to be furnished, if available
Part B of Form 15 CA ***(Form 15CB required)
Who Shall Fill ItTo be filled up for remittances other those specified in Part A (If the Remittance is chargeable to tax and exceed Rs. 50000 per transaction and aggregate of such payments made during the financial year exceeds Rs. 2,50,000)
What information has to be filled1. Forms prescribe mandatory application of provisions of Section 206AA, if PAN of remittee is not available;
2. Other Details
Secion A:
Details of Remitter, Remittee and Accountant to be specified in this section
Secion B:
Particulars of Remittance and TDS (as per certificate of accountant), namely:
a. Remittance details
b. Taxability under the Income Tax Act
c. Taxability under the relevant DTAA. Details of TRC (Tax Residency Certificate)
d. TDS details
*** Part B of Form 15CA is to be filled after obtaining either of the below
  • a certificate in form no. 15cb from an accountant (chartered accountant) or
  • a certificate from the Assessing Officer (AO) under Sec 197 or
  • an order from Assessing Officer under sub-sec (2) or sub-section (3) of sec 195

Additional details to be provided in new Form 15CB are
  • Taxability under the Income-tax Act without considering the relief of the DTAA
  • If income is chargeable to tax in India and relief is claimed under the DTAA, whether TRC has been obtained from the recipient?
  • If remittance is on account of capital gains details of amount of short-term, long-term capital gains and the basis of arriving at the taxable income.
Revised Process for filing Form 15CA (atleast till the time NSDL site is update)
1. Login on the e-filing portal at the following link  –https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
2.  Visit the link – e-file → Prepare and Submit Online Form(Other than ITR) → Select Form 15CA and Assessment year.
Form 15CA & Form 15CB not required for Import Payments
Few banks have started asking for Form 15CA and Form 15CB sighting RBI circular of 2007 “Remittances to non-residents – Deduction of tax at source
CBDT Circular clearly states ” 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 provision of the Act, shall furnish the following information” (in form 15CA and Form 15CB)
Payments made against Import Purchases constitutes Business Income of the Overseas Supplier and is taxable in India only if it is attributable to a Business connection/Permanent Establishment in India as per Section 9(1)(i) and respective Double Tax Avoidance Agreement. Thus, in absence of any income chargeable to tax in India there cannot be any application of Section 195 & form 15CA and Form 15CB is not applicable for remittances towards import payments.
Few banks are taking a declaration from Importers in their forwarding letter that given Import payment amount is non chargeable to tax in India and carrying out transaction without Form 15CA and Form 15CB.
Specified List :  
Explanation 2: For the removal of doubts, it is hereby clarified that for payments of the nature specified in column (3) of the specified list below, no information is required to be furnished under sub-rule (1).
Thus no form 15CA and Form 15CB in applicable for below cases.
Sl.No.Purpose code as per RBINature of payment
(1)(2)(3)
1S0001Indian investment abroad -in equity capital (shares)
2S0002Indian investment abroad -in debt securities
3S0003Indian investment abroad -in branches and wholly owned subsidiaries
4S0004Indian investment abroad -in subsidiaries and associates
5S0005Indian investment abroad -in real estate
6S0011Loans extended to Non-Residents
7S0202Payment- for operating expenses of Indian shipping companies operating abroad.
8S0208Operating expenses of Indian Airlines companies operating abroad
9S0212Booking of passages abroad -Airlines companies
10S0301Remittance towards business travel.
11S0302Travel under basic travel quota (BTQ)
12S0303Travel for pilgrimage
13S0304Travel for medical treatment
14S0305Travel for education (including fees, hostel expenses etc.)
15S0401Postal services
16S0501Construction of projects abroad by Indian companies including import of goods at project site
17S0602Freight insurance – relating to import and export of goods
18S1011Payments for maintenance of offices abroad
19S1201Maintenance of Indian embassies abroad
20S1 202Remittances by foreign embassies in India
21S1301Remittance by non-residents towards family maintenance and-savings
22S1302Remittance towards personal gifts and donations
23S1303Remittance towards donations to religious and charitable institutions abroad
24S1304Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
25S1305Contributions or donations by the Government to international institutions
26S1306Remittance towards payment or refund of taxes.
27S1501Refunds or rebates or reduction in invoice value on account of exports
28S1503Payments by residents for international bidding

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