Form 15CA and 15CB
One such form
which is required at the time of remittance of money outside India is filing of
Form 15CA and 15CB.
Although normal tax assessee’s might not have heard about
Form 15CA and 15CB, however, any person making remittances outside India are
quite conversant about these forms.
This article will help you understand what these forms are, and
when these forms are required to be filed.
At the time of remittance of money outside India, the authorized
bank asks for filing of these two forms besides other documents from the
taxpayer in order to ensure smooth transfer of money outside India.
Form 15CA is a declaration
form used to declare that proper taxes has been deducted from the foreign
remittance made by the person responsible for it before remitting the amount.
Form
15CB is a certificate issued by the practicing Chartered Accountant certifying
that taxes has been deducted from foreign remittance keeping in view the
provisions of the domestic law and treaty applicable between 2 countries.
As mentioned above, form 15CA and 15CB
are required only at the time of remittance outside India. It is not applicable
in case of receipt of money from outside India.
What happens if you don't
file a Form 15CA or 15CB?
Filing of form 15CA and 15CB are
compulsory and any noncompliance in this regard may lead to penalty upto Rs.1
lac
What are the constituents
of form 15CA and 15CB
Normally, following details are
required to be submit in form 15CA and 15CB
a)
Remitter
Details- Name
and address of the remitter and his PAN
b) Remittee Details- Name and Address of the
remittee
c) Country of Remittee
d) Details of the Banker- Name and Branch of Bank,
Currency in which remittance need to be made, Amount in Foreign Currency and
INR, BSR Code.
e) TDS Details- TDS rate as per Income Tax Act
and DTAA, Amount of TDS in Foreign Currency and INR, Date of deduction of TDS
etc.
f) Digital Signature- Digital signature of signing professional.
How form 15CA and 15CB are
filed?
Previously, such forms used to be
filed manually, however, now such forms are filed electronically by login into
the tax department portal of the assessee.
What is the role of RBI
purpose code in filing form 15CA and 15CB
For each type of remittances, RBI
has provided separate purpose code. It may be possible that one portion of
amount to be remitted is taxable whereas second portion is exempt, in such
cases separate form 15CA and 15CB would be required to be filed. For example,
in case of remittance of interest and principal portion of FDR, banker might
ask for copies of separate form 15CA and 15CB since RBI purpose codes are
different for interest which is taxable and for principal which is exempt.
Can
Form 15CA and Form 15CB uploaded on portal can be Cancelled or Withdrawn or Revised?
Form 15CA and 15CB cannot be revised, however the same may be
revoked or withdrawn. Also, if form 15CB has been filed independently, the same
cannot be withdrawn.
However, Form 15CA can be withdrawn within 7 days from the
date of Submission.
Thus, form
15CA and 15CB are important forms
required at the time of making foreign remittance and every assessee shall keep
in mind the regulatory requirements relating to same as non filing or
noncompliance may lead to penalties prescribed under the Income Tax Act.
In case
you have any queries or feedback or need any assistance, please call at
+919899217778 or visit our website www.ezybizindia.in
Comments
Post a Comment