Form 15CA and 15CB - Rule 37BB

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

Form 15CA and 15CB are required in case of foreign payments. These forms helps in ensuring that the tax is timely collected on foreign payments. In case of non-compliance the payer will be responsible for the penalty payment. Hence, all the payers making payment to Non-resident shall ensure compliance with Rule 37BB.

Form 15CA is required to be filed electronically by the Payer and the same shall be verified by a Chartered Accountant in form 15CB

Let us see the Rule in details:

Applicability: All payers making any payment to:

a) Non-Resident (Other than Company)

b) Foreign Company

Taxable Payments

A. In case the payment or aggregate payment does not exceed 5 lac rupees, Information in Part A of 15CA should be furnished. Form 15CB is not required.

B. In case the payment or aggregate payment exceeds 5 lacs, Information is required in:-

i) Part B 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;

ii) Part C after obtaining - Form 15CB from the accountant

Non-Taxable Payments

For non-taxable payment information is required to be furnished in Part D of 15CA. 15CB not required

Exception for Non-Taxable Payment: Form 15CA and 15CB is not required in below cases:

a) Payer is an Individual and Remittance does not require RBI approval as FEMA Act.

b) Remittance is of following nature (33):

1. Indian investment abroad - in equity capital (shares)

2. Indian investment abroad - in debt securities

3. Indian investment abroad - in branches and wholly owned subsidiaries

4. Indian investment abroad - in subsidiaries and associates

5. Indian investment abroad - in real estate

6. Loans extended to Non-Residents

7. Advance payment against imports

8. Payment towards imports - settlement of invoice

9. Imports by diplomatic missions

10. Intermediary trade

11. Imports below Rs.5,00,000 - (For use by ECD offices)

12. Payment for operating expenses of Indian shipping companies operating abroad

13. Operating expenses of Indian Airlines companies operating abroad

14. Booking of passages abroad - Airlines companies

15. Remittance towards business travel

16. Travel under basic travel quota (BTQ)

17. Travel for pilgrimage

18. Travel for medical treatment

19. Travel for education (including fees, hostel expenses etc.)

20. Postal services

21. Construction of projects abroad by Indian companies including import of goods at project site

22. Freight insurance - relating to import and export of goods

23. Payments for maintenance of offices abroad

24. Maintenance of Indian embassies abroad

25. Remittances by foreign embassies in India

26. Remittance by non-residents towards family maintenance and savings

27. Remittance towards personal gifts and donations

28. Remittance towards donations to religious and charitable institutions abroad

29. Remittance towards grants and donations to other Governments and charitable institutions established by the Governments

30. Contributions or donations by the Government to international institutions

31. Remittance towards payment or refund of taxes

32. Refunds or rebates or reduction in invoice value on account of exports

33. Payments by residents for international bidding.