Making payments outside India requires certain compliance’s. One such compliance is to submit Form 15CA and 15CB, when required. Form 15CA and 15CB is a tool for the collection of information for the payments which are chargeable for tax in the hands of Non Resident of India (NRI) .
According to the provision of Income Tax Act 1962, every person making payment outside India to non resident should deduct tax while paying such amount. The amount so deducted shall be deposit into government of India account through applicable challan on or before due date.
The bank will required to check (verify) deduction of tax. In case of non deduction of tax, it will be checked that it is verified by the Chartered Accountant or the assessing officer. However , there are 33 (List of payments of specified nature mentioned in Rule 37BB) types of foreign remittance where you do not require any submission of Form 15CA or Form 15CB.
Form – 15CA
A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online. In some cases, a Certificate from Chartered Accountant in form 15CB is required after uploading the form 15CA online.
It is a declaration of remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. Authorized Dealers/ Banks are now ensuring that such forms are received by them before remittance is affected.
Thus the Form 15CA is required to be filed online with the tax department. After that, proof of online submission should be printed out and this copy is required to be provided to the Bank as a proof of tax clearance from the tax department.
Form – 15CB
Form 15 CB is Form which is required to be signed by a Chartered Accountant. This certificate contains details regarding payment, rate of TDS as per Section 195 of the Income Tax Act, if any DTAA is applicable, with other details of nature and purpose of the remittance.
The form includes details of remittee and remitter and nature of remittance like salary, royalty, commission as per the agreement of both sides bank details of remitter in case of remitter lies in DTAA (double taxation avoidance agreement).
Quarterly statement in respect of remittances under rule 37BB of Income Tax Rules, 1962
- As per sub-rule (7) of rule 37BB of the Income-tax Rules, 1962, the authorised dealers are required to furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems).
- The form is required to be filed electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates.
PROCEDURE FOR SUBMISSION OF FORM 15CC
Users who have already registered in e-Filing portal can use this functionality to generate ITDREIN (Income Tax Department Reporting Entity Identification Number) and upload certain forms in e-Filing portal using the generated ITDREIN.
ITDREIN is the Unique ID issued by ITD which will be communicated by ITD after the registration of the reporting entity with ITD. The ITDREIN is a 16-character identification number in the format XXXXXXXXXXYZNNN where,
XXXXXXXXXX – PAN or TAN of the reporting entity
Y – Code of Form Code
Z – Code of Reporting Entity Category for the Form Code
NNN – Code of sequence number.
(a) Generation of ITDREIN:
Step 1: Loginto e-Filing portal using User ID, e-Filing Password and DOB/DOI.
Step 2: Go to Manage ITDREIN” under the tab “My Account”
Step 3: To generate new ITDREIN click on the button “Generate New ITDREIN”.
Step 4: A Pop up with Form Type and Reporting Entity Category is displayed. Select the Form Type and Reporting Entity Category from the dropdown.
Step 5: Based on the Form Type and Reporting Entity Category selected, the ITDREIN will be generated and the user will be able to upload and view the corresponding Form.
It should be noted the reporting entity is required to apply for different ITDREIN for different reporting entity categories.
Step 6: Click Generate ITDREINbutton. Once ITDREIN is generated, the reporting entity will receive a confirmation e-mail on the registered e-mail ID and SMS at registered mobile number.
Note: There will be no option to de-activate ITDREIN, once ITDREIN is created.
(b) Add the details of authorised person:
The reporting financial institution will then be required to submit the details of authorised person (who will file Form 15CC).
Step 1: Loginto e-Filing portal using User ID, e-Filing Password and DOB.
Step 2: Go to My Account >>> Manage ITDREIN.
Step 3: To add Authorised Person for the generated ITDREIN, click on the link provided in the ITDREIN Column and then on the button Add Authorised Person.
Step 4: Enter all the details and Click on Add Authorised Person button. Success Message is displayed.
Step 5: Once the details of authorized person are entered by the reporting entity, the authorized person will need to confirm through activation link on e-mail by entering the OTP sent on the mobile of the authorized person and generate the password.
(c) Submission of Form 15CC:
Once the authorised person of the reporting entity gets registered successfully, it is required to submit Form 15CC.
Step 1: Login to e-Filing portal using ITDREIN, Authorised Person PAN and Password.
Step 2: Download the utility to prepare XML file (which can be downloaded from the e-filing website home page under forms (other than ITR) tab)
Step 3: On successful validation upload the corresponding ZIP file, generate the Signature file using DSC Management Utility and Click on Upload.
Step 4: Once uploaded the status of the statement shall be “Uploaded”. The uploaded file shall be processed and validated. Upon validation the status shall be either “Accepted” or “Rejected which will reflect within 24 hours from the time of upload. In case if “Rejected”, the rejection reason shall be available and the corrected statement can be uploaded.