Applicability of Form 15CA and 15CB w.e.f 01/10/2013

CBDT has again changed the Rule 37BB of Income Tax Rule and the new rule will help the Indian Parties remitting/paying the monies to foreign persons/companies. Now it has been provided  that in case of 28 types of payments , there shall be no need to submit Form 15CA or obtaining Form 15CB.

Changes in New Form 15CA

Part A of Form 15 CA (Form 15CB not required)
Particulars	Changes
Who Shall Fill It	To be filled up if the remittance to non resident or to a foreign company do not exceed Rs. 50000 per transaction and aggregate of such payments made during the financial year does not exceed Rs. 2,50,000
What information has to be filled	1. Particulars of Remitter, Remittee, Remittance made and TDS
	2. Mandatory to furnish PAN of Remitter, if tax is deducted
	3. Form prescribes mandatory application of provisions of Section 206AA, if remittance is chargeable to tax and PAN of remittee is not available.
	4. E-mail and Phone Number of remittee to be furnished, if available

Part B of Form 15 CA (Form 15CB not required)
Who Shall Fill It	To be filled up if the remittance is covered by specified list (given in Explanation to Rule 37BB) and the amount paid to the non-resident or foreign company is claimed not chargeable to tax.
What information has to be filled	1. Details of Remitter, Remittee and Remittance.
	2. In addition, nature of remittance, relevant code of specified list (given in Explanation to Rule 37BB) under which remittance is covered and information to be provided regarding the country of residence of the remittee, if available.
	3. Form 15CB is not required to be furnished if remittance is covered in this part.

Part C of Form 15 CA ***(Form 15CB required)
Who Shall Fill It	To be filled up for remittances other those specified in Part A and Part B
What information has to be filled	1. Forms prescribe mandatory application of provisions of Section 206AA, if PAN of remittee is not available;
	2. Other Details
	Secion A:
	Details of Remitter, Remittee and Accountant to be specified in this section
	Secion B:
	Particulars of remittance and TDS (as per certificate of accountant), namely:
	a. Taxability under the Income Tax Act
	b. Taxability under the relevant DTAA
	c. Details of TRC (Tax Residency Certificate)
	d. Bifurcation of capital gains, if any, into short-term, long-term capital gains and the basis of arriving at taxable income

*** Part C of Form 15CA is to be filled after obtaining either of the below

§  a certificate in form no. 15cb from an accountant (chartered accountant) or

§  a certificate from the Assessing Officer (AO) under Sec 197 or

§  an order from AO under sub-sec (2) or sub-section (3) of sec 195

Changes in New Form 15CB

Additional details to be provided in new Form 15CB are

§  Taxability under the Income-tax Act without considering the relief of the DTAA

§  If income is chargeable to tax in India and relief is claimed under the DTAA, whether TRC has been obtained from the recipient?

§  If remittance is on account of capital gains details of amount of short-term, long-term capital gains and the basis of arriving at the taxable income.

What are the List of Payments Exempt from Filing of Form 15CA?

The Rule 37BB also contains a Specified List on which Rule 37BB(1) does not apply. This is cleared in the Rule itself by adding an explanation 2 as under
Explanation 2.—For the removal of doubts, it is hereby clarified that for payments of the nature specified in column (3) of the specified list below, no information is required to be furnished under sub-rule (1).

Here is the list of 28 Types of Payments

SPECIFIED LIST:

Sl. No. (1)	Purpose code as per RBI (2)	Nature of payment (3)
1	S0001	Indian investment abroad -in equity capital (shares)
2	S0002	Indian investment abroad -in debt securities
3	S0003	Indian investment abroad -in branches and wholly owned subsidiaries
4	S0004	Indian investment abroad -in subsidiaries and associates
5	S0005	Indian investment abroad -in real estate
6	S0011	Loans extended to Non-Residents
7	S0202	Payment for operating expenses of Indian shipping companies operating abroad.
8	S0208	Operating expenses of Indian Airlines companies operating abroad
9	S0212	Booking of passages abroad – Airlines companies
10	S0301	Remittance towards business travel.
11	S0302	Travel under basic travel quota (BTQ)
12	S0303	Travel for pilgrimage
13	S0304	Travel for medical treatment
14	S0305	Travel for education (including fees, hostel expenses etc.)
15	S0401	Postal services
16	S0501	Construction of projects abroad by Indian companies including import of goods at project site
17	S0602	Freight insurance – relating to import and export of goods
18	S1011	Payments for maintenance of offices abroad
19	S1201	Maintenance of Indian embassies abroad
20	S1202	Remittances by foreign embassies in India
21	S1301	Remittance by non-residents towards family maintenance and savings
22	S1302	Remittance towards personal gifts and donations
23	S1303	Remittance towards donations to religious and charitable institutions abroad
24	S1304	Remittance towards grants and donations to other governments and charitable institutions established by the governments.
25	S1305	Contributions or donations by the Government to international institutions
26	S1306	Remittance towards payment or refund of taxes.
27	S1501	Refunds or rebates or reduction in invoice value on account of exports
28	S1503	Payments by residents for international bidding”.