What are Form 15CA AND 15CB?

These forms are required in case of foreign payments
Earlier,these forms used to be filled for import fo goods and services both
Now,these are required to be filled only in case of services(now they are not to be filled for goods)
 

 

Why do we need to fill these Forms?

We need to fill these forms and give it to bank.Only then Bank wil make payments to foregin parties
These forms contain details of TDS Deduction on foreign Payments

 

What is Rate of TDS for Foreign Payments?

TDS is to be deducted as per
Rates of Income Tax( Section 195 etc)
or
Rates as per DTAA(Double Tax Avoidance Agreement signed by India with foreign countries)(
whichever is less
 

What is the Procedure to be followed in this case?
When Foreign Invoice is to be Paid,bill is first sent to Chartered Accountant

Chartered Accountant checks Rates as per Income Tax and Rates as per DTAA and issues Form 15CB 
This is filed online at incometaxwebsite by using his digital signature
 
On basis of 15CB,Company have to fill Form 15CA using directors digital signature
(In many companies,Chartered Accountant fills both forms 15CB and 15CA)
 
Both 15CB and 15CA are to be submitted to bank,only then bank makes payment to foreign Party
 
 
Note 
In some cases,only 15CA is filled,not 15CB 
There are 4 parts of 15CA like
 
Part A - To be filled up if the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, does not exceed five lakh rupees during the financial year.
 
 
Part B - To be filled up if the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.
 
 
Part C - To be filled up if the remittance is chargeable to tax under the provisions of Income-tax Act, 1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288 has been obtained
 
 
Part D - To be filled up if the remittance is not chargeable to tax under the provisions of the Income-tax Act,1961 {other than payments referred to in rule 37BB(3)} by the person referred to in rule 37BB(2).
 
 
15 CA CB.jpg
 
Note :
 
15CB Is required only in case of In case of Part C
 
For Depositing this TDS,Normal TDS Challan 281 Is used
However,for Return,TDS Form is Form 27Q in case of TDS Non Salary
Due dates and Procedures are same
 

Procedure payment to foreign party - Concept of 15CA 15CB

  1. Tax Practical
  2. Practical TDS (Non Salary)

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 9 years. He also provides Accounts Tax GST Training in Delhi and Pune.