Certifications including Form -15CA & Form-15CB
Remittances to Non-Residents under section 195 of the Income-Tax Act, 1961 – Matters connected thereto – Regarding.
- Section 195 of the Income-Tax Act, 1961, mandates deduction of Income-Tax from payment made or credit given to Non-Residents at the rates in force. The Reserve Bank of India has also mandated that except in the case of certain personal remittances which have been specifically exempted, no remittance shall be made to a Non-Resident unless a no-objection certificate has been obtained from the Income-Tax Department. This was modified to allow such remittances without insisting on a no-objection certificate from the Income-Tax Department, if the person making the remittance furnishes an undertaking (addressed to the Assessing Officer) accompanied by a certificate from an accountant in a specified format. The certificate and undertaking are to be submitted (in duplicate) to the Reserve Bank of India/authorized dealers who in turn are required to forward a copy to the Assessing Officer concerned. The purpose of the undertaking and the certificate is to collect taxes at the stage when the remittance is made as it may not be possible to recover the tax at a later stage from Non-Residents.
- There has been a substantial increase in Foreign Remittances, making the manual handling and tracking of certificates difficult. To monitor and track transactions in a timely manner, section 195 was amended vide the, Finance Act, 2008, to allow the CBDT to prescribe rules for electronic filling of the undertaking. The format of the undertaking (From 15CA) which is to be filed electronically and the format of the certificate of the accountant (From 15CB) have been notified, vide Rule 37BB of the Income-Tax Rules, 1962.
- The Person making the payment (remitter) will obtain a certificate from an accountant (other than employee) in Form 15CB.
- The remitter will then access the website to electronically upload the remittance details to the Department in Form 15CA (undertaking). The information to be furnished in Form 15CA is to be filled using the information contained in Form 15CB (certificate).
- The remitter will then take a print out of this filled up Form 15CA (which will bear an acknowledgement number generated by the system) and sign it. Form 15CA (undertaking) can be signed by the person authorized to sign the return of income of the remitter or a person so authorised by him in writing.
- The duly signed Form 15CA (undertaking) and Form 15CB (certificate), will be submitted in duplicate to the Reserve Bank of India/ authorized dealer. The Reserve Bank of India/authorized dealer will in turn forward a copy the certificate and undertaking to the Assessing Officer concerned.
- A remitter who has obtained a certificate from the Assessing Officer regarding the rate at or amount on which the tax is to be deducted is not required to obtain a obtain a certificate from the accountant in Form 15CB. However, he is required to furnish information in Form 15CA (undertaking) and submit it along with a copy of the certificate from the Assessing Officer as per the procedure mentioned from Sl. Nos. (i) to (iv) above.
CBDT Circular No. 4 dated 29.06.2009 (2009) 314 ITR (St.) 237.
Procedure for furnishing information under sub-section (6) of section 195 of the Income-Tax Act, 1961 read with rule 37BB of the Income-Tax Rules, 1962
- Form 15CA should be used for furnishing information of remittances in e-mode in accordance with the provisions of section 195 (6) of the Income-Tax Act, 1961. The information should be furnished after obtaining a certificate in Form 15CB from an accountant as defined in the Explanation to section 288 of the Income-Tax Act, 1961. The print out Form 15CA should be signed and submitted to the Reserve Bank of India / authorized dealer prior to remitting the payment.
- The Form should be furnished at the website of the Tax Information Network www.tin-nsdl.com
- Fields marked with (*) are mandatory.
- Select the values from the drop down wherever provided.
- Each transaction detail should be filled in separately. Guidelines for Part A of Form 15CA.
- Permanent Account Number (PAN) and Tax Deduction and collection Account Number (TAN) allotted by the Income-Tax Department should be mentioned. TAN is mandatory in cases where
- tax has been deducted or will be deducted at source;
- the remitter has obtained an order under section 195(2) of the Income-Tax Act from the Assessing Officer
- In case an invalid PAN and / or TAN is filled in by the remitter, the From will not be generated
- PAN of the remitter should invariably be given. However, the same is mandatory if status of entity is Company or Firm. If PAN is not given in such cases, the remitter will not be allowed to generate the Form.
- Details in at least two address fields for remitter should be mentioned.
- Name of the entity should be mentioned in the “ Name of remitter” field.
- No value is to be provided in Area code, AO type, Range code & AO number. The fields will be entered by the system after validating the PAN and / or TAN.
- E-mail ID and mobile No., if any, should be provided.
Recipient of remittance
- Complete address of recipient of remittance, separated by coma, should be provided.
- PAN, allotted by the Indian Income-Tax Department should be mentioned.
- If status of entity is “company”, then provide type of company i.e., “domestic” or “other than domestic”.
- In the field “Principal Place of Business”, the country of tax residence of the recipient of the remittance should be mentioned.
Information for accountant
- Enter name of the Chartered Accountant in the field “name of the accountant”.
- Details in at least two address fields should be mentioned.
- Date of certificate should not be a future date.
- Registration No. should be numeric.
- Details of accountant are not required if point No. 15 is selected i.e., any order under section 195(2) / 195(3) / 197 of the Income- Tax Act has been obtained from Assessing Officer
- Certificate number is an alphanumeric field.
Guidelines for PART B of the Form (Particulars of Remittance and TDS)
TDS Consultant in Kolkata
- Provide the values as per the accountant certificate obtained in Form 15CB.
- In case name of the country is not available in drop down list, select value “other” from the drop down and provide name of the country.
- In case currency name is not available in drop down then select value “other from the drop down and provide name of the currency.
- Proposed date of remittance should be current date or a future date.
- Amount of TDS should be less than amount of remittance.
- Actual amount of remittance after TDS should be less than amount of remittance.
- BSR code of the bank through which the remittance is made should be mentioned.
- Rate of TDS as per DTAA (if applicable) should be mentioned up to two decimal places.
- Amount should be mentioned up to 2 decimal places.
- Select any one out of fields 12, 13, 14 and 16. One form is to be filled for one type of remittance.
- Details of “responsible person” should be mentioned for verification.
- If no tax has been deducted then value “0.00” should be mentioned in “Amount of TDS field (foreign currency and Indian Rupees.)
- Value for “rate of deduction as per the Income-Tax Act” should be “0.00” if no tax has been deducted and “amount of TDS in Indian and foreign currency” should be “0.00.
Generation of Form 15CA
- After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.
- A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.
- On confirmation a filled up Form 15CA with an acknowledgement number will be displayed. Print out of the Form should be taken, signed and submitted prior to remitting the payment.
- Form 15CA can be re-printed by selecting the re-print option. For re- printing, please enter “acknowledgement No.”, “PAN” and / or “TAN” mentioned in the Form.