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|
|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.)|
|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|