A Person Responsible For Making a Payment to a non-resident or to a foreign company has to comply with form 15CA & 15CB provisions
Form15CA is a Declaration given by Remitter and is used as a tool by statutory authorities for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident.
Form15CB - The person making the payment needs to obtain a certificate from a Chartered Accountant in Form 15CB.
Form15CB is the Tax Determination Certificate where the issuer CA examines the remittance having regard to chargeability provisionsu/s 5 and 9 of Income tax Act along with provisions of Double tax Avoidance Agreements with the Recipient's Residence Country.
The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB. The important changes are as below:-
Form 15CA and 15CB shall be not be required to be furnished by an individual for remittance, which does not require RBI approval.
List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports.
Form No. 15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds Rs. 5 lakhs.
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