What Is FORM 15CA/CB?
Form 15CA is the proclamation of a person making a payment to a non-resident is utilized as a medium for gathering data in respect to the Section 195 of Income Tax Act,1961, it instructs to impose income tax on the payments made to a non-resident.
Form 15CB is the Tax Determination Certificate in which the Chartered Accountant probes the concern of chargeable provisions under Section 5,1961 and section 9,1976 of the Income Tax Act beside the Double Tax Avoidance Agreements.
There are four form of 15CA
Part A
When the payment or the cumulative amount of the payment extended by the remitter to the NRI receiver during a particular financial year is Rs. 5 Lakhs or less, Section A of Form 15CA is fulfilled by the remitter.
Part B
The function of Section B of Form 15CA is when such payments surpass Rs. 5 Lakhs. The filer shall enter the information in Section B after receiving from the Assessing Officer a certificate (valid under section 197) or an order from the Assessing Officer (valid under section 195 of sub-section (2) or sub-section (3).
Part C
If such payments made during a particular FY exceed Rs. 5 Lakhs, it is appropriate to enter the related details in Section C of Form 15CA after obtaining from the authorised CA the Tax Determination Certificate or Form 15CB (valid under section 288 of sub-section (2).
Part D
Payments made by the remitter during a particular FY which is not referred to in sub-section 37BB or in other words is not taxable under law, the information related to such payments is to be entered in Section D of Form 15CA.
Influence of new rules on form 15CA & 15CB
1. Not needed when it is necessary to fill in Part A of Form 15CA, i.e. in the case of small payments.
2. 28 types of payments for which, along with the form, no information is needed at all.
3. In the case of other payments, it appears that either an order or a certificate from the Assessing Officer u/s has been issued. 197/195(2)/195(3) must be received, or the Chartered Accountant's certificate must be obtained.
4. Sub-rule (2) of the revised Rule 37BB requires that Form 15CA be submitted to the authorized dealer prior to the payment of the payment.
who are applicable for form 15CA & form 15CB?
Form 15CA is a declaration made by any person wishing to make a remittance :
To a non-resident or an international business (irrespective of whether remittance is subject to tax)
The sender who could be a resident/non-resident/domestic company/foreign company.
When money is accrued/received/received or declared to be accrued/received/received in India (Section 5 of Income Tax Act).
Form 15CB is the certificate required to be filed by the Chartered Accountant before the transition is made :
Non-resident or international business is liable to tax.
Payment reaches Rs. 5,00,000/-.
When the order/certificate has not been issued by the Assessing Officer (AO).
