Payments made to Non-Residents & requirement to furnish Form No. 15CA/ Form No. 15CB/ Form No. 15CC arises from section 195(6) of the Income Tax Act, 1961

Requirement to furnish Form No. 15CA / Form No. 15CB / Form No. 15CC arises from section 195(6) of the Income Tax Act, 1961 which reads as under :

Text of Section 195(6)

^[1][(6) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.]

KEY NOTE

1.   Substituted by the Finance Act, 2015, with effect from 01.06.2015, Prior to substitution, sub-section (6) read as under:

“ The person referred to in sub-section (1) shall furnish the information relating to payment of any sum in such form and manner as may be prescribed by the Board.”

Furnishing of Information – Section 195(6) read with rule 37BB

(a) Form No. 15CA -       Furnishing of Information to Tax Department – [Form No. 15CA is e-form-cum-declaration to be uploaded by the payer]

(b) Form No. 15CB -       CA Certificate before making payment – [Form No. 15CB is certificate from Chartered Accountant]

(c)  Form No. 15CC. -      Every authorized dealer making remittance to a non-resident, not being a company or to a foreign company, is required to make a quarterly disclosure of such remittance in Form 15CC.

 

Furnishing of information for payment to a non-resident, not being a company, or to a foreign company [Rule 37BB of the Income Tax Rules, 1962]

Rule 37BB of the Income-tax Rules, 1962 prescribes the information required to be furnished by a remitter while making a payment to a nonresident recipient. Section 195(6) of the Act, read with rule 37BB, provides that the remitter paying any sum, whether or not chargeable under the provisions of the Act, shall furnish the information relating to the payment in a form and manner as prescribed by the Central Board of Direct Taxes (CBDT).

Text of Rule 37BB

Furnishing of information for payment to a non-resident, not being a company, or to a foreign company.

37BB . (1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, shall furnish the following, namely: -

(i)    the information in Part A of Form No.15CA, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year does not exceed five lakh rupees;

(ii)   for payments other than the payments referred in clause (i), the information, -

(a)   in Part B of Form No.15CA after obtaining, -

(I)    a certificate from the Assessing Officer under section 197; or

(II)  an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195;

(b)   in Part C of Form No.15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288.

(2)   The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No.15CA.

(3)  Notwithstanding anything contained in sub-rule (2), no information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if,—

(i)      the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or

(ii)     the remittance is of the nature specified in column (3) of the specified list below:

 

S. No.	Purpose code as per RBI	Nature of payment
1.	S0001	Indian investment abroad - in equity capital (shares)
2.	S0002	Indian investment abroad - in debt securities
3.	S0003	Indian investment abroad - in branches and wholly owned subsidiaries
4.	S0004	Indian investment abroad - in subsidiaries and associates
5.	S0005	Indian investment abroad - in real estate
6.	S0011	Loans extended to Non-Residents
7.	S0101	Advance payment against imports
8.	S0102	Payment towards imports - settlement of invoice
9.	S0103	Imports by diplomatic missions
10.	S0104	Intermediary trade
11.	S0190	Imports below Rs. 5,00,000 - (For use by ECD offices)
12.	SO202	Payment for operating expenses of Indian shipping companies operating abroad
13.	SO208	Operating expenses of Indian Airlines companies operating abroad
14.	S0212	Booking of passages abroad - Airlines companies
15.	S0301	Remittance towards business travel
16.	S0302	Travel under basic travel quota (BTQ)
17.	S0303	Travel for pilgrimage
18.	S0304	Travel for medical treatment
19.	S0305	Travel for education (including fees
20.	S0401	Postal services
21.	S0501	Construction of projects abroad by Indian companies including import of goods at project site
22.	S0602	Freight insurance - relating to import and export of goods
23.	S1011	Payments for maintenance of offices abroad
24.	S1201	Maintenance of Indian embassies abroad
25.	S1202	Remittances by foreign embassies in India
26.	S1301	Remittance by non-residents towards family maintenance and savings
27.	S1302	Remittance towards personal gifts and donations
28.	S1303	Remittance towards donations to religious and charitable institutions abroad
29.	S1304	Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30.	S1305	Contributions or donations by the Government to international institutions
31.	S1306	Remittance towards payment or refund of taxes
32.	S1501	Refunds or rebates or reduction in invoice value on account of exports
33.	S1503	Payments by residents for international bidding

(4)  The information in Form No. 15CA shall be furnished, -

(i)    electronically under digital signature in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment; or

(ii)   electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.

(5)  An income-tax authority may require the authorised dealer to furnish the signed printout of Form No.15CA referred to in clause (ii) of sub-rule (4) for the purposes of any proceedings under the Act.

(6)  The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) under sub-rule (8).

(7)  The authorised dealer shall furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8).

(8)  The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of Form 15CA, Form 15CB and Form 15CC and shall be responsible for the day-to-day administration in relation to the furnishing and verification of information, certificate and quarterly statement in accordance with the provisions of sub-rules (4), (6) and (7).

Explanation. - For the purposes of this rule ‘authorised dealer’ means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).

 

[1] Form No. 15CA :

What is Form No. 15CA

Form No. 15CA is a declaration of remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This form helps Income Tax Department in tracking foreign remittances and their taxability.

Form No. 15CA is an undertaking filed electronically by person making remittances to non-resident containing the details of remittances, remittee and remitter. As per rule 37BB, it is a duty of authorized dealers/banks to ensure that such forms are received by them from the remitter. A person responsible for making such remittance (payment) has to submit the form 15CA, before remitting the payment.

 

Who is required to file Form 15CA

§  As per Section 195/rule 37BB, every person making a payment to Non-Residents (not being a Company), or to a Foreign Company shall deduct TDS if such sum is chargeable to Income Tax and the details are required to be furnished in Form 15CA.

§  In case the payment or the aggregate of such payments made during the financial year does not exceed Rs. 5,00,000, such information is to be furnished in Part A of Form No. 15CA.

§  In case the payment exceeds Rs. 5,00,000/-, such information is required to be furnished in Part B of Form No. 15CA after obtaining a certificate from the Assessing Officer under section 197; or an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195.

§  In case the payment exceeds Rs. 5,00,000, such information is required to be furnished in Part C of Form 15CA after obtaining certificate in Form No. 15CB from an accountant as defined in the Explanation to sub-section (2) of section 288.

§  In case the payment other than the payment referred in sub-rule (3) of rule 37BB which is not chargeable to tax under the provisions of Income-tax Act,1961, such information is required to be furnished in Part D of Form No. 15CA.

Exemptions from filing Form 15CA

For any sum not chargeable to tax in India under provisions of the Act, if—

v  The remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or

v  The remittance is of the nature of 33 categories provided in the specified list – Rule 37BB (3)(ii) as follows:

S. No.	Purpose code as per RBI	Nature of payment
1	S0001	Indian investment abroad -in equity capital (shares)
2	S0002	Indian investment abroad -in debt securities
3	S0003	Indian investment abroad -in branches and wholly owned subsidiaries
4	S0004	Indian investment abroad -in subsidiaries and associates
5	S0005	Indian investment abroad -in real estate
6	S0011	Loans extended to Non-Residents
7	S0101	Advance payment against imports
8	S0102	Payment towards imports -settlement of invoice
9	S0103	Imports by diplomatic missions
10	S0104	Intermediary trade
11	S0190	Imports below Rs.5,00,000 -(For use by ECD offices)
12	SO202	Payment for operating expenses of Indian shipping companies operating abroad
13	SO208	Operating expenses of Indian Airlines companies operating abroad
14	S0212	Booking of passages abroad -Airlines companies
15	S0301	Remittance towards business travel
16	S0302	Travel under basic travel quota (BTQ)
17	S0303	Travel for pilgrimage
18	S0304	Travel for medical treatment
19	S0305	Travel for education (including fees, hostel expenses, etc.)
20	S0401	Postal services
21	S0501	Construction of projects abroad by Indian companies including import of goods at project site
22	S0602	Freight insurance -relating to import and export of goods
23	S1011	Payments for maintenance of offices abroad
24	S1201	Maintenance of Indian embassies abroad
25	S1202	Remittances by foreign embassies in India
26	S1301	Remittance by non-residents towards family maintenance and savings
27	S1302	Remittance towards personal gifts and donations
28	S1303	Remittance towards donations to religious and charitable institutions abroad
29	S1304	Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30	S1305	Contributions or donations by the Government to international institutions
31	S1306	Remittance towards payment or refund of taxes
32	S1501	Refunds or rebates or reduction in invoice value on account of exports
33	S1503	Payments by residents for international bidding.

NOTE

§  It is to be submitted electronically using digital signatures but may also be submitted without DSC as per procedures.

§  Submission of Form 15CA is mandatory before the remittance is made.

§  Signed Printouts are required to be submitted with the Authorised Dealer.

 

Information on remittance of amount to be furnished by the payer in Form 15CA

·        Form 15CA comprises details such as Name of Remitter, Name of Beneficiary, Nature of Remittance etc. and contains four parts

·        Procedure prescribed in Rule 37BB of the Income Tax Rules

·        Examination of Permanent Establishment (PE) and attribution of profit to PE

·        Beneficial ownership/Tax residency, [Tax Residence Certificate (TRC) is sufficient evidence to claim Tax Treaty Benefits]

·        Classification of Income : Royalty, Fees for Technical Services (FTS), etc.

·        Certificate from Chartered Accountant may be obtained in Form 15CB

 

Which part of Form 15CA need to fill

The furnishing of information for payment to Non-Residents not being a Company, or to a Foreign Company in Form 15CA has been classified into 4 parts. Depending upon the case, you will need to fill the relevant part.

PART A: Where the remittance or the aggregate of such remittance does not exceed Rs. 5,00,000/- during the financial year

PART B: Where remittance or the aggregate of such remittances exceed Rs. 5,00,000/- during the financial year and an order / certificate under section 195(2) / 195(3) /197 of the Act has been obtained from the Assessing Officer.

PART C: Where the remittance or the aggregate of such remittance exceed Rs. 5,00,000/- during the Financial year and a certificate in Form No 15CB from an accountant has been obtained.

PART D: Where the remittance is not chargeable to tax under the Income Tax Act, 1961.

 

When Form 15CA is not required to be furnished

In accordance with rule 37BB(3), Form 15CA and Form 15CB are not required to be furnished in case of following transactions:—

·        Remittance is made by an individual and it does not require prior approval of the Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999), read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or

·        Remittance is of the nature specified in rule 37BB(3).

 

NOTE

·        It is to be submitted electronically using digital signatures but may also be submitted without DSC as per procedures.

·        Submission of Form 15CA is mandatory before the remittance is made.

·        Signed Printouts are required to be submitted with the Authorised Dealer.

·        No forms 15CA & 15CB will be required to be furnished by an individual for remittance which does not require RBI approval under Liberalised Remittance Scheme.

 

[2]  Form No. 15CB :

 

What is Form No. 15CB

Form 15CB is a Chartered Accountant’s certificate required for payment to be made to a Non-Resident (not being a Company) or to a Foreign Company, which is taxable and if the payment / aggregate of such payments exceed Rs. 5,00,000 in the financial year.

Form 15CB is an event-based form and is required for each remittance that satisfies the condition laid. In form 15CB, a CA certifies the details of the payment, TDS rate, TDS deduction and other details of nature and purpose of remittance. In other words, Form 15CB is the Tax Determination Certificate in which the CA examines a remittance with regard to chargeability provisions. This form can be submitted both in online and offline mode and no time limit is prescribed for filing the Form. 

 

Purpose of Form No. 15CB

§  It is a Channel of obtaining tax clearance apart from certificate from Assessing Officer.

§  There is no condition to obtain such certificate when the remittance is not chargeable to tax. This is the Tax Determination Certificate where the issuer Chartered Accountant examines the remittance having regard to chargeability provisions under sections 5 and 9 of Income Tax Act along with provisions of Double Tax Avoidance Agreements (DTAA) with the Recipient’s Residence Country.

§  This is kind of certification regarding the tax amount or rates with reference to Income Tax Act, 1961 or Double Taxation Avoidance Agreement (DTAA).

§  Double Taxation Avoidance Agreement Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction.

§  It is not unusual for a business or individual who is a resident in one country to make a taxable gain in another. In this Certificate, Chartered Accountant certify the nature of payment made to non-resident, rate of TDS as per section 195 of Income Tax Act,1961, and also whether DTAA is applicable or not.

§  Form 15CB is required only as an attachment along with Part C of 15CA.

 

When different parts of 15CA and 15CB are applicable?

Ans. Part A, B, C of 15CA is required only if the Income sought of be remitted is chargeable to tax in India in the hands of the non-resident recipient.

Part A: Part A of Form 15CA to be filled up if the remittance is chargeable to tax under the provisions of the Income-Tax Act 1961 and the remittance or the aggregate of such remittances, as the case may be, does not exceed Rs. 5,00,000/- during the Financial Year.

Part D : Part D of Form 15CA is required only when such income is not chargeable to tax in the hands of the non-recipient.

Even in the case of Part D, this part is not required to be submitted if the amount sought to be remitted are of the nature referred to in Part III of Foreign Exchange Management (Current Account Transactions) Rules, 2000 or referred to in Rule 37BB(3) of Income Tax Rules 1962.

Who is authorized to issue 15CB under the Income Tax Act, 1961?

A Chartered Accountant holding valid Certificate of Practice is authorized to issue 15CB under the Income Tax Act, 1961

 

How to Access and Submit

You can fill and submit Form 15CB through the following methods:

·      Online Mode - through e-Filing Portal

·      Offline Mode - through offline utility

Both forms 15CA and 15CB are to be filed online

Earlier only form 15CA had to be filed online but now form 15CB i.e. certificate by a Chartered Accountant is also to be filed online.

§  Form 15CA and 15CB (i.e certificate by a Chartered Accountant can only be through digital form in Income Tax Return Website through digital form in Income Tax Return Website

§  Only through digital form in Income Tax Return Website. A copy has to be submitted to Authorized Dealer before remittance.

Steps for remittance

STEP – 1	Obtain Form 15CB if: (i) remittance is taxable; and (ii) aggregate remittances exceed Rs. 5,00,000/- during the financial year
STEP – 2	Upload the remittance details in Form 15CA through the income-tax e-filing portal
STEP – 3	Submit signed print-out of Form 15CA along with copy of Form 15CB with the bankers for remittance

Situations where no Forms 15CB will be required

(i)   Form 15CB will not be required till the aggregate of remittances during the financial year does not exceed Rs. 5,00,000.

(ii)  Form 15CB will also not be required where order/certificate of lower/ no deduction is taken from the Jurisdictional Assessing Officer under sections 195(2), 195(3), 197 of the Income-tax Act, 1961.

(iii) Form 15CB is also not required where the remittance is not chargeable to tax.

 

When payment made exceeds Rs 5 lakh

Following documents is required to be submitted:

§  Part B of Form 15CA has to be provided

§  Certificate in Form 15CB from a Chartered Accountant

§  Part C of Form 15CA

 

Instructions for Filing Form 15CA & 15CB

Steps (15CA Offline/Bulk Mode)

Filing of Form 15CA

Step	Action by	Action Description
Step 1	Taxpayer	Login to e-Filing portal. Navigate to “e-File” menu and select File Form 15CA under File Forms sub-menu.
Step 2	Taxpayer	On selection of Form 15CA, PAN/TAN of Assessee is auto populated. Provide Financial Year, Filing Type and Submission Mode “Offline/Bulk”.
Step 3	Taxpayer	Download the Form 15CA Offline Utility. Alternatively, the utility can also be downloaded from “Downloads” section of the Homepage under Income Tax Forms page.
Step 4	Taxpayer	Prepare individual XML’s for Remitter, Remittee and CA (only for Part-C) combination. Zip single/multiple XML’s. In case of Part-C, the taxpayer has to import XML of Form 15CB submitted by the CA. The submitted Form 15CB XML can be downloaded from View e-Filed Forms functionality post login.
Step 5	Taxpayer	Upload the zip file and submit using prescribed modes of e-verification. A Token Number is generated.
Step 6	Taxpayer	Login to e-Filing portal. Navigate to “e-File” menu and select View Form 15CA Offline/Bulk menu under View Income Tax Forms sub-menu.
Step 7	Taxpayer	The status of each individual XML under the Token Number will be shown as a Success or Failure once the processing is completed. In case an XML is a Success, an Acknowledgement Number is generated for each Form 15CA. Downloadable PDF of Form 15CA will be made available in view filed forms. A valid acknowledgement is also generated for submission of 15CA/CB.
Step 8	Taxpayer	In case of a Failure, no Acknowledgement Number will be generated and reasons for failure will be shown. Re-upload corrected XML file with corrected validations/data after considering reasons for failure. In this case the failed XML can be again zipped and uploaded. Taxpayers are also provided an export option to download the ARN number, processing status, XML file name to identify any failed XML’s.

Note: Only one Form 15CB Acknowledgement Receipt Number (ARN) can be used for filing one Form 15CA Part-C.

 

Steps (15CB Offline/Bulk Mode)

Appointment of CA

Step	Action by	Action Description
Step 1	Taxpayer	Login to e-Filing Portal. Navigate to “My Chartered Accountant(s)” functionality under Authorised Partners menu. Add CA by providing the Membership Number. Assign Form by selecting Form 15CB, Financial Year and click ‘Add’. This is a one-time appointment to be made every Financial Year.
Filing of Form 15CB
Step 2	CA	Login to e-Filing portal. Navigate to “e-File” menu and select File Form 15CB under File Forms sub-menu.
Step 3	CA	On selection of Form 15CB, User ID and PAN of CA is auto populated. Provide Filing Type, Submission Mode “Offline/Bulk” and Financial year.
Step 4	CA	Download the Form 15CB Offline Utility. Alternatively, the utility can also be downloaded from “Downloads” section of the Homepage under Income Tax Forms page.
Step 5	CA	Prepare individual XML’s for Remitter, Remittee and CA combination. A zip file containing one XML or multiple XML’s of different taxpayer can be uploaded in the system. There is no limit specified and taxpayer can submit any number of XML’s in a Single Zip File.
Step 6	CA	Login to e-filing Portal. Upload the zip file and submit under Digital Signature Certificate (DSC). A Token Number is generated.
Step 7	CA	Navigate to “e-File” menu and select View Form 15CB Offline/Bulk menu under View Income Tax Forms sub-menu.
Step 8	CA	The status of each individual XML under the Token Number will be shown as a Success or Failure once the processing is completed. In case an XML is a Success, an Acknowledgement Number is generated for each Form 15CB
Step 9	CA	In case of a Failure, no Acknowledgement Number will be generated and reasons for failure will be shown. Re-upload corrected XML file with corrected validations/data after considering reasons for failure. In this case the failed XML can be again zipped and uploaded. Downloadable PDF of Form 15CB in all successful cases will be made available in view filed forms. Taxpayers are also provided an export option to download the ARN number, processing status, XML file name to identify any failed XML’s and enable easy mapping of ARN number to a corresponding 15CA XML.

Note : Only one Form 15CB Acknowledgement Receipt Number (ARN) can be used for filing one Form 15CA Part-C.

Steps (15CA Part-C and 15CB Online Mode)

Appointment of CA

Step	Action by	Action Description
Step 1	Taxpayer	Login to e-Filing Portal. Navigate to “My Chartered Accountant(s)” functionality under Authorised Partners menu. Add CA by providing the Membership Number. Assign Form by selecting Form 15CB, Financial Year and click ‘Add’. This is a one-time appointment to be made every Financial Year
Filing of Form 15CB
Step 2	CA	Login to e-Filing portal. Navigate to “e-File” menu and select File Forms sub-menu.
Step 3	CA	Select Form 15CB appearing under File Forms sub-menu.
Step 4	CA	On selection of Form 15CB, User ID and PAN of CA is auto populated. Provide PAN/TAN of the assessee to whom certificate in Form 15CB is required to be issued, Filing Type, Submission Mode “Online” and Financial year.
Step 5	CA	Click Continue. Navigate to Form 15CB Instructions Screen. Prepare Form 15CB and generate Preview. Proceed to e-Verify and submit under Digital Signature Certificate (DSC) of CA. An Acknowledgement Number is generated for Form 15CB. Downloadable PDF of Form 15CB will be made available in view filed forms. No acknowledgement will be generated till taxpayer files a valid 15CA quoting the acknowledgement number of 15CB.
Filing of Form 15CA Part-C
Step 6	Taxpayer	Taxpayer Login to e-Filing portal. Navigate to “e-File” menu and select File Forms sub-menu.
Step 7	Taxpayer	Taxpayer Select Form 15CA appearing under File Forms sub-menu.
Step 8	Taxpayer	Taxpayer On selection of Form 15CA, PAN/TAN of Assessee is auto populated. Provide Financial Year, Filing Type and Submission Mode “Online”. Form 15CA with all Parts is displayed. Select Part-C radio button. Click Proceed. A pop up appears wherein taxpayer is expected to provide ARN of Form 15CB generated by CA.
Step 9	Taxpayer	Taxpayer Once Form 15CB ARN is validated, Part-C of Form 15CA is prefilled from Form 15CB.
Step 10	Taxpayer	Complete balance fields of Form 15CA Part-C and submit the Form using prescribed modes of e-verification. Downloadable PDF of Form 15CA will be made available in view filed forms. A valid acknowledgement is also generated for submission of 15CA/CB.

Note : Only one Form 15CB Acknowledgement Receipt Number (ARN) can be used for filing one Form 15CA Part-C.

Withdrawal functionality of 15CB forms at e-filing portal

Withdrawal facility has been enabled on the e-filing portal facilitating the Chartered Accountant to withdraw the 15CB forms by recording appropriate reasons, therein within 7 days of its filing.

[3]  Form No. 15CC :

What is Form No. 15CC? Who needs to file it?

As per Section 195(6) of Income Tax Act, quarterly statements are required to be furnished in Form 15CC by an authorized person in respect of remittances made for the quarter of a Financial Year. 

Once the authorized person of the reporting entity gets mapped to the ITDREIN generated by the Reporting Entity, the authorized person is required to login to the portal with the ITDREIN, PAN and password and submit Form 15CC.

Form 15CC : Frequently Asked Questions (FAQ)

1. What is Form 15CC?
Every authorized dealer making remittance to a non-resident, not being a company or to a foreign company, is required to make a quarterly disclosure of such remittance in Form 15CC.
 

2. What are the modes of submission of form 15CC?
Form 15CC can be submitted through online mode only. In order to file the Form online, post login to e-Filing portal, select the Form, prepare and submit the form.
 

3.  What is ITDREIN?

Income Tax Department Reporting Entity Identification Number (ITDREIN) is an identification number allotted by the Income Tax Department (ITD) to a Reporting Entity. After an ITDREIN is generated and an authorized person is added against the generated ITDREIN, the authorized person can upload and / or view Form 15CC and Form V.

4. Is ITDREIN required to be mandatorily generated before filing form 15CC?
Yes. Authorized person added by the reporting entity will have to use the ITDREIN to log in to the e-Filing portal and file form 15CC.
 

5. When is it required to file Form 15CC?
It is required to be furnished to the competent authority of the Income Tax Department electronically within fifteen days from the end of the quarter of the financial year to which such payment relates.

6. How do I know that the form has been submitted successfully?
You will receive a confirmation on your email ID and mobile number registered with the e-Filing portal. Additionally, you can also view the status in your Worklist under For your Actions tab.

7. Is e-Verification necessary for submitting Form 15CC? if yes, how can I e-Verify the Form 15CC?
Yes, it is necessary to e-Verify Form 15CC. You will have to e-Verify using Digital Signature Certificate.

 

Form No. 15CC

(See rule 37BB)

Quarterly statement to be furnished by an authorised dealer in respect of remittances made for the quarter of ………….. of ………. (Financial Year)

 

1. Name and address of the authorised dealer: ……………………………………………….

2. Permanent Account Number: ………………………………………………………………

3. Details of remittances made:

S. No.	Name of the remitter	PAN of the remitter	Name of the remittee	PAN of the remittee, if available	Amount of remittance	Date of remittance	Country to which remittance is made	Purpose Code as per RBI

 

Verification

I ………………………..(full name in block letters), son/daughter of ………………. solemnly declare that

to the best of my knowledge and belief, the information given above are correct and complete.

Place …………                                                             Signature …….……………….

Date ………….                                                             Name and Designation ………………

Penalty of Rs. 1,00,000 for failure to furnish information or furnishing inaccurate information for each default of non-filing for Forms 15CA/15CB [Section 271-I]

As per section 195(6) of the Act, any person responsible for paying to a nonresident (not being a company) or to a foreign company, any sum (whether or not chargeable to tax), shall furnish the information relating to payment of such sum in Forms 15CA and 15CB.

As per section 271-I, if a person, who is required to furnish information under section 195(6), fails to furnish such information; or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of one lakh rupees.

CBDT prescribes procedure for e-filing of Form 15CC in respect of foreign remittance made under section 195 [CBDT Notification No. 8/2016 [F. No. DGIT(S)/ADG(S)-2/TDS E-Filing]

CBDT Notification/110/2016, Dated 04.05.2016

 

Subject :   Section 195 of the Income-tax Act, 1961 - Deduction at source - Other Sums - Procedure for submission of Form 15CC by an Authorised Dealer in respect of remittances under section 195(6)

Under sub-section (6) of section 195 of the Income-tax Act, person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, is required to furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.

2. As per sub-rule (7) of rule 37BB of the Income-tax Rules, 1962, the authorised dealers are required to furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8).

3. In exercise of the powers delegated by Central Board of Direct Taxes ('Board') under sub-rule (8) of Rule 37BB of the Income-tax Rules 1962, the Principal Director General of Income-tax (Systems) hereby lays down the procedure for submission of Form 15CC as follows:

(a)  Generation of ITDREIN: The reporting entity is required to get registered with the Income Tax Department by logging in to the e-filing website with the login ID used for the purpose of filing the Income-tax Return of the reporting entity. In case if the reporting entity is not registered for filing Income-tax Return, it may get ITDREIN by logging in with its TAN. A link to register reporting entity has been provided under "My Account>Manage ITDREIN". The reporting entity is required to apply for different ITDREIN for different reporting entity categories. Once ITDREIN is generated, the reporting entity will receive a confirmation e-mail on the registered e-mail ID and SMS at registered mobile number. There will be no option to de-activate ITDREIN, once ITDREIN is created.

(b)   Submission of details of authorised person: The reporting financial institution will then be required to submit the details of authorised person (who will file Form 15CC). Once the details of authorized person are entered by the reporting entity, the authorized person will need to confirm through activation link on e-mail by entering the OTP sent on the mobile of the authorized person and generate the password.

(c)   Submission of Form 15CC: Once the authorised person of the reporting entity gets registered successfully, it is required to submit Form 15CC. The authorised person is then required to login to the e-filing website with the ITDREIN, PAN and password. The prescribed schema for the report under Form 15CC and a utility to prepare XML file can be downloaded from the e-filing website home page under forms (other than ITR) tab. The authorised person will be required to submit the PAN of the reporting entity, period for which report is to be submitted and the reporting entity category for which the report is to be submitted. The authorised person will then be provided the option to upload the Form 15CC. The form is required to be submitted using a Digital Signature Certificate of the authorised person.

Remittance of Assets – Submission of Auditor’s certificate RBI Circulars [RBI/2014-15/332

A.P. (DIR Series) Circular No. 43, Dated : 02.12.2014]

To

All Category - I Authorised Dealer Banks

Madam / Sir,

Subject : Remittance of Assets – Submission of Auditor’s certificate - Regarding

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Remittance of Assets) Regulations, 2000, notified vide Notification No. FEMA 13/2000-RB dated May 3, 2000, as amended from time to time, which required submission of certificates in the formats prescribed by Central Board of Direct Taxes, Ministry of Finance, Government of India specified in their circular No. 10/2002 dated October 9, 2002.

2. The instructions by Central Board of Direct Taxes (CBDT) regarding submission of certificates have undergone significant changes over the years. Also it is pertinent to note that CBDT vide its notification dated September 2, 2013 has revised the instructions regarding furnishing of tax declarations and submission of Form 15CA and 15 CB.

3. Accordingly, Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Remittance of Assets) (Amendment) Regulations, 2014 notified vide Notification No. FEMA. 324/2014-RB dated October 31, 2014, c.f. G.S.R. No. 803 (E) dated November 14, 2014, with respect to submitting certificates on tax payments.

4. In this connection, Authorised Dealer banks may refer to the instructions contained in A.P (DIR Series) Circular No. 151 dated June 30, 2014. The conditions stipulated therein shall be complied with while making remittances.

5. AD Category- I banks may bring the contents of the circular to the notice of their constituents concerned.

6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully

Sd/-

(C D Srinivasan)

Chief General Manager

 

CBDT Circular No. 04/2009, Dated 29.06.2009

Subject : CBDT on Remittance to Non-Residents under Section 195

         Section 195 of the Income-tax Act, 1961 mandates deduction of income tax from payments 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 / authorised 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.

2.         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 Finance Act, 2008 to allow CBDT to prescribe rules for electronic filing of the undertaking.  The format of the undertaking (Form 15CA) which is to be filed electronically and the format of the certificate of the Accountant (Form 15CB) have been notified vide Rule 37BB of the Income-tax Rules, 1962.

3.        The revised procedure for furnishing information regarding remittances being made to non-residents w.e.f. 1st July, 2009 is as follows:-

 

(i)      The person making the payment (remitter) will obtain a certificate from an accountant* (other than employee) in Form 15CB.

 

(ii)     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).

 

(iii)    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 authorised to sign the return of income of the remitter or a person so authorised by him in writing.

 

(iv)    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.

 

(v)     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 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 S. No.(i) to (iv) above.

 

(vi)      A flow chart regarding filing of Form 15CA and Form 15CB is enclosed at Annexure -A.

4.         The Directorate General of Income-tax (Systems) (www.incometaxindia.gov.in) shall specify the procedures, formats and standards for running of the scheme as well as instructions for filling up Forms 15CA and 15CB. These forms shall be available for upload and printout at www.tin-nsdl.com.

5.         The Reserve Bank of India is being requested to circulate the revised procedure among all authorised dealers.

 

Annexure - A

Flow chart of filing undertaking form under section 195 of Income Tax Act 1961

Remitter

• Obtains certificate of Accountant (Form 15CB). This form is available at the website

www.tin-nsdl.com

 

• RBI/Authorized dealer remits the Amount
• Submits the signed paper undertaking form to the RBI/Authorized dealer along with certificate of an Accountant in duplicate.
• Printout of the undertaking form (15CA) is signed
• Electronically uploads the remittance details in Form 15CA
• Takes printout of filled undertaking form (15CA) with system generated acknowledgement number.

• A copy of undertaking (Form 15CA) & certificate of Accountant (Form 15CB) forwarded to Assessing Officer
• Accesses the above website

DTAA benefit on TDS allowable for rightful beneficiary as error in Form 15CA/CB ‘clerical’

Gujarat High Court dismisses Revenue's appeal against ITAT ruling absolving the Assessee from TDS liability due to beneficial treaty provisions, where entity other than the payee was mentioned in Forms 15CA and 15CB; Relies on co-ordinate bench ruling in PCIT, Vadodara v.             Bell Ceramics Ltd in Tax Appeal No. 162 of 2021 wherein it held that appeal before the High Court can be admitted if the High Court is satisfied that the case involves substantial question of law; High Court takes note of ITAT ruling wherein the facts have been thoroughly examined and holds that “based on factual appreciation especially the condition in the customer service agreement, the bank invoice and the Bank remittance advice, a finding of fact has been arrived at that the assesse’s case was protected under the India-USA DTAA and that mere rendering of services cannot be roped into FTS unless the person utilising the services is able to make use of the technical knowledge etc”;  Assessee, engaged in the business of cutting, polishing and export of diamonds, entered into a customer services agreement with the Gemological Institute of America (GIA US) which certifies the diamond on request; GIA US set up a laboratory in Hong Kong under a separate company called GIA Hong Kong Laboratory Ltd. (GIA HK) with which Assessee had no direct relation; During Assessment year 2015-16, Assessee sent certain diamonds to Hong Kong for certification by GIA US and the invoices were raised by GIA US, payment was also made to offshore bank account of GIA US in Hong Kong; However, while filing Form 15CA/CB, Assessee inadvertently mentioned the name of beneficiary as GIA HK; Revenue held that since payment is made to GIA HK, Assessee is not eligible to claim the beneficial provisions of India-US DTAA or India-China DTAA; Assessee was thus held to be in default for non-deduction of tax at source for alleged payment made to GIA HK and demand of Rs. 4.43 Cr was raised under Section 201 read with Section 201(1A); Revenue contended that since diamonds were shipped to Hong Kong for certification, testing and payment were done in Hong Kong, thus the services were rendered by GIA HK and the payments were merely routed through GIA US only to obtain benefit of India-US DTAA; High Court takes note of the affidavit submitted by the Assessee that indicates that the diamond grading certificates issued by GIA US are considered as standard benchmark both by the traders as well as consumers; High Court observes ITAT order wherein the customer service agreement is discussed with respect to the GIA “take in window” in Dubai and GIA’s Laboratories in Hong Kong and Israel which specifically mentions that the agreement shall be between the client and GIA US and not with GIA’s local business entity established in such countries; Thus, notes the ITAT order wherein the authorities appreciated that there is a “take in window” where articles are delivered but the service agreement is between the assessee and GIA USA. The rightful owner of the remittances as also made in the account of the USA entity is the GIA Inc. USA”; High Court concludes that services were rendered by GIA US and by considering the make available clause as per India-US DTAA, simple rendering of services as in the present case is not sufficient to qualify as FIS/FTS; Hence, dismisses the appeal as devoid of substantial question of law. [In favour of assessee] (Related Assessment year : 2015-16) – [CIT (International Taxation And Transfer Pricing) v. Star Rays, Surat Star Rays [TS-443-HC-2023(GUJ)] (Guj,)]

Non-resident’s copy-editing, proof-reading services not FTS; Section 195 TDS inapplicable; violation of Section 195(6) of the Act and failure to file certificates in Form 15CA and 15CB is punishable separately under Section 271I of the Act

Chennai ITAT deletes disallowance under section 40(a)(ia), rules that assessee's (engaged in e-publishing and undertakes editorial services, multilingual typesetting and data conversion) payment to non-residents in UK, USA, Germany and Spain for providing services of copy-editing, indexing and proof-reading are not taxable in India, Section 195 TDS inapplicable; Revenue had held that services rendered by non-residents were covered under the 'make available' clause of India-UK & India-USA DTAA, further it was contended that the services rendered by the non-residents from Germany & Spain (wherein 'make available' clause is not available in the respective DTAA) were technical in nature, hence attracted provisions of Section 195; Opines that The copy editing, indexing and doing proof reading required only knowledge in the language and it does not require to have necessary expertise in the subject matter of text. Therefore, the CIT(Appeals) is not correct in saying that the services rendered by the non-residents are technical services.”, Relies on co-ordinate bench decision in Cosmin Global Ltd; Further, w.r.t Revenue’s contention that the assessee failed to file certificates in Form 15CA and Form 15CB, ITAT opines The violation of Section 195(6) of the Act and failure to file certificates in Form 15CA and 15CB is punishable separately under Section 271I of the Act. Therefore, at the best, .. the Assessing Officer may initiate penalty proceeding under Section 271I of the Act. However, there cannot be any disallowance under Section 40(a)(ia) of the Act. [In favour of assessee] (Related Assessment year : 2011-12) – [Integra Software Services (P) Ltd. v. DCIT, Puducherry [TS-640-ITAT-2019(CHNY)] – Date of Judgement : 25.10.2019 (ITAT Chennai)]