May 18, 2022
Foreign remittance Compliance is one of the most challenging paths to be covered. This compliance can get one’s pulse racing cause the process involves regular money and foreign money. Compliance, in itself, often brings people tense. In this article, we have tried to rest those fears and ensure a smooth process of submission and compliance.
There has been significant changes in applicability of Form 15CA-CB Filing. The significant changes are as follows –
1. Name of the Remitter
2. Address of the Remitter
3. PAN of the Remitter
4. Principal Place of Business of the Remitter
5. E-Mail Address and Phone No. Of Remitter
6. Status of the Remitter (Firm/Company/Other)
B. Details of Remittee
1. Name and Status of the Remittee
2. Address of the Remittee
3. Country of the Remittee (Country to Which Remittance Is Made)
4. Principal Place of the Business of the Remittee
C. Details of the Remittance
1. Country to Which Remittance Is Made
2. Currency in Which Remittance Is Made
3. Amount of Remittance in Indian Currency
4. Proposed Date of Remittance
5. Nature of Remittance as Per Agreement (Invoice Copy, If any)
D. Bank Details of the Remitter
1. Name of Bank of the Remitter
2. Name of Branch of the Bank
3. BSR Code of the Bank
E. Others
1. Father’s Name of the Signing Person
2. Designation Of The Signing Person
15 CA: Payments made by a resident Indian to any non-resident has to be reported under the Income Tax Act. The idea behind the tax deduction at source & its reporting is to ensure collection of taxes on time. Form 15CA is a declaration stating that he has deducted the tax from payments so made to the non-resident.
15 CB: Unlike the first Form 15 CA, which is a declaration, this Form 15CB, is a certificate issued by a Chartered Accountant. This Certificate ensures that the provisions of the Double Taxation Avoidance Agreement and the Income Tax Act have been complied with in respect of tax deductions while making the payments. It includes the following:
???? Details and nature of payment made to a Non Resident.
???? Compliance with Section 195 of the Income Tax Act.
???? Rate of TDS deducted.
???? Applicability of the Double Taxation Avoidance Agreement.
???? If the amount of remittance is not chargeable to tax, then no forms are required.
???? If the remittance is covered under a specified exemption list, then only Part D of the Form 15CA is to be submitted.
???? Where remittance is less than Rs. 5 lakh in a particular financial year – Only Form 15CA – Part A to be submitted.
???? Where remittance exceeds Rs. 5 lakh – Form 15CA – Part C and Form 15CB to be submitted.
???? Where remittance exceeds Rs. 5 lakhs and a certificate under Section 195(2)/195 (3)/197 of the Income Tax has been obtained – Form 15CA – Part B to be submitted.
???? Name of the Remitter
???? Address details
???? Contact information
???? Residential status of the Remitter
???? Name of the recipient of the Remitter
???? PAN (if available)
???? Details of remittance
???? Details of TDS
???? Verification of the form.
The submission of forms such as these, in reality, aren’t as complicated and tedious as they are normally believed to be. Moreover, the option of withdrawing the form presents the opportunity to retract the form when necessary.
Here are the full details
A person responsible for making a payment to a non-resident or a foreign company has to provide the following details –
When payment made is below Rs 5 lakh.
For such payments, information is required in Part A of Form 15CA
???? In the following cases, no submission of information is required
An individual makes the remittance, 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]
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.
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