Today we are discussing on Form 15CA and 15CB, for making foreign payments. Form 15CB is given by the chartered accountant and form 15CA will be given by the clients.
Why form 15CA and 15CB
Form 15 CA and 15CB will be required for making the payments to the vendor outside India, for getting any services or purchasing any equipments, assets etc
Meaning of Form 15CB –
Form 15CB will be given by the chartered accountant to the Clients after checking the TDS on the same. Chartered accountant should check the provision of tractability of payment given to the non resident Indian.chartered accountant should provide tax under income tax act and where DTAA apply tax as per DTAA, tax residence certificate details.
How to check the TDS is applicable or not on foreign payments?
Check the provision of income tax act whether TDS is applicable or not on the particular payments and if TDS is applicable check the TDS rate as per income tax act.
Check the DTAA rate as per treaty by the income tax government.
TDS will be deducted at the lower of Income tax rate defined by the government or DTAA agreement.
Form 15 CB from Chartered Accountant will not required in certain cases –
The single payment made to a vendor does not exceed Rs. 50,000 and aggregate of all payments to particular vendor does not exceed Rs. 250,000 during a financial year
The payment is not chargeable to tax and the nature is included in the “Specified List”. T he specified list specifies 39 natures of payments and also mentions the purpose code for each nature.
Chartered Accountant should take following documents before giving the 15CB certificate for payments other than interest –
1 Form no 10f (Information to be provided under sub-section (5) of section 90 and 90A of the income tax Act)
2 Self attested Permanent establishment certificate of Vendor
3 TRC certificate of foreign country (business proof like pan card in India)
Note in case of interest , royalty and technical fees payments Permanent establishment certificate not required.
Meaning of Form 15CA:-
15CA to be filled by the clients.
Form 15CA has 3 parts. Information in Part A of the Form 15CA is to be furnished if the remittance does not exceed 50,000 or 250,000 in aggregate in a financial year.
For Part B of the Form No. 15CA to be used when nature of remittance is covered by the “Specified List”.
For any other payment, information in Part C of the Form 15CA is to be furnished.
Information required for filing the Form 15CA from the vendor is –
- Name and Status of the vendor
- Address of the vendor
- Country of the vendor (Country to Which Remittance Is Made)
- Principal Place of the Business of the vendor
Procedure of Submitting Form 15CA
1 Obtain a 15CB Form from the chartered accountant.
2 Go to the website and fill all the details of Part A and Part B.
3 After filing the details a confirmation screen will be displayed. Check and confirm the details
4 After confirming, Form 15 CA with Acknowledgment number will be displayed on screen.
4 Take print out of the Form 15CA and make the signature on the form.
5 Submit two copy of Form 15CA and 15 CB to the banks.
Click here to download the procedure 15CA/CB procedure.
