Suppose you are an Indian resident making payments to a foreign entity or receiving payments from a foreign entity. In that case, it is mandatory to comply with the legal provisions of the Income Tax Act 1961. According to the Act, you must file Form 15CA and Form 15CB with the tax authorities before remitting funds to a foreign entity. Filing these 15 CA and CB Forms can be complex, requiring extensive knowledge of tax laws and regulations. Taxation Point India can assist you in navigating the process of filing form 15CA and form 15CB with ease; our team of experts ensures that your compliance requirements are met without any hassle.
As per Section 195 of the Income Tax Act 1961, any individual or entity responsible for making payment to a non-resident, which includes a foreign company, must deduct income tax at the applicable rate prior to the payment being made.
The remitter must also submit an undertaking in Form 15 CA, which provides details of the payment being made to the non-resident. Furthermore, a certificate in Form 15CB, attested by a chartered accountant, is required for payments exceeding INR 5 lakh. This certificate provides details of the nature of the payment, the tax rate applied, and the amount of tax deducted.
Form 15CA and Form 15CB are necessary forms that must be submitted under the Income Tax Act, 1961, for any payments made by a resident to a non-resident.
Form 15 CA is a declaration made by the person making the payment. In contrast, Form 15CB is a certificate issued by a Chartered Accountant (CA), ensuring that the provisions of the Income Tax Act and the Double Taxation Avoidance Agreement have been complied with.
Both these 15CA and CB forms are essential for ensuring timely and accurate reporting of any payments made to non-residents and for ensuring that taxes are collected on time.
Form 15 CA and 15CB are applicable for making foreign remittances under India's Income Tax Act 1961. The applicability of these 15 CA and CB forms depends on the nature and amount of the remittance.
Applicability of Form 15CA is as follows:
As per the latest rules and regulations, the payments where Form 15CA and Form 15CB are not required include the following:
Form 15 CA/15CB is segregated into sections based on various situations. The applicant needs to go through the 15 CA and CB form and fill in the proper details in the relevant section:
Form 15 CA has four parts based on the amount of remittance and the requirement of other certificates or orders under the Income Tax Act.
The penalty for not filing or late filing of 15 CA and CB form is Rs. 10,000 per instance.
To file Form 15 CA and 15CB, the following details are required:
The process for filing Form 15 CA and Form 15CB is as follows:
Note that the procedure for filing Form 15 CA and Form 15CB may vary depending on the specific transaction and other factors.
Taxation Point India can help you file Form 15 CA-CB, from preparation to submission, and ensure that you comply with all the applicable regulations.
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