In this article we discuss about the payment of specified nature where furnishing of Form 15CA & 15CB is not required.

Section 195(6) of Income Tax Act

As per section 195(6) of Income Tax Act, 1961, the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable to tax shall furnish the information relating to such payment, in such form and manner as may be prescribed.

Where furnishing of Form 15CB & 15CA is not required

In the following cases furnishing of Form 15CB & 15CA is not required:-

  • Form 15CB & 15CA will not be required furnished by an individual for remittance in case of where RBI approval does not required.
  • List of payments specified in Rule 37BB which do not require submission of Form 15CA & 15CB has been extend from 28 to 33 including payment for imports.
  • CA Certificate in Form 15CB will be required only in case of where such payment made to non-resident is chargeable to tax and amount of payment during the year exceeding of Rs. 5 lakh.

Rule 37BB of the Income Tax Act, 1961 (Specified Nature of Payment):-

S. No.       Nature of Payment
1 Indian Investment abroad – in equity capital (Shares)
2 Indian Investment abroad – in debts 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 Loan extend to Non-Residents
7 Advance payment against imports
8 Payment towards imports-settlement of invoice
9 Imports by diplomatic missions
10 Intermediary trade
11 Import 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 aboard
14 Booking of passages aboard – Airline 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 Payment for maintenance of office abroad
24 Maintenance of Indian embassies abroad
25 Remittances by foreign embassies in India
26 Remittances by non-residents towards family maintenance and savings
27 Remittances 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 Government
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