What is Form 15CA and 15CB?

Form 15CA

Form 15CA is a declaration that is required to be submitted by the person making the remittance (i.e., the remitter). It provides information related to the remittance and ensures that the necessary taxes have been deducted at source (TDS) before the payment is made to a foreign party. This form is submitted to the Income Tax Department to report cross-border transactions exceeding certain thresholds.

Form 15CB

Form 15CB is a certification provided by a Chartered Accountant (CA) that confirms the tax compliance of the remittance. The CA certifies that the remittance complies with Indian tax laws and verifies whether any TDS has been deducted before making the payment. The form also ensures that the remittance doesn’t violate any provisions of the Income Tax Act.

Who Needs to File Forms 15CA and 15CB?

• Individual or business remitters: Anyone making a payment to a foreign entity, including foreign companies, individuals, or partnerships, must file these forms.
• Remittances for services or goods: Payments related to foreign services, royalty payments, or income from business activities abroad need to comply with the filing of these forms.
• Threshold limit: These forms are generally required when the remittance exceeds ₹5 lakhs in a financial year to a single foreign entity.

Steps for Filing Form 15CA and 15CB

Step 1: Preparation of Form 15CB

• A Chartered Accountant (CA) reviews the transaction and ensures compliance with TDS provisions.
• The CA certifies the remittance and provides the required details in Form 15CB.

Step 2: Fill Form 15CA

• After obtaining the Form 15CB from the CA, the remitter needs to fill Form 15CA on the Income Tax Department’s website.
• The form will require details such as the remitter’s information, the foreign party’s information, nature of the payment, and amount.

Step 3: Submit Form 15CA

• After filling out Form 15CA, the remitter submits it electronically on the Income Tax e-filing portal. The remitter will get an acknowledgment number after submission.

Step 4: Attach Form 15CB

• Form 15CB should be attached to Form 15CA at the time of submission. This is the certification by the CA ensuring that all tax deductions and provisions have been adhered to.

Step 5: Keep Records

• After successful submission of 15CA and 15CB, the remitter should keep the acknowledgment receipt and all related documents for future reference, including bank payment details and tax certificates.

Documents Required for Filing 15CA and 15CB

1. Details of Remittance: The amount and nature of the payment to be made to the foreign party.
2. PAN of Remitter: Permanent Account Number of the person or entity making the remittance.
3. PAN of Foreign Party: If available, PAN details of the foreign payee.
4. Form 15CB: A signed and certified document by a Chartered Accountant.
5. Agreement or Invoice: For clarity on the transaction type and payment details.
6. Tax Payment Receipts: Proof of tax deductions made, if applicable.