Form 15CA-15CB Filing Services
Form 15CA – 15CB Filing Services by Deepak Prakash & Associates
At Deepak Prakash & Associates, we specialize in providing Form 15CA and 15CB filing services to help businesses comply with the tax regulations set by the Government of India. These forms are essential for individuals or businesses making foreign payments and are required under the Income Tax Act, 1961 to ensure that all tax obligations are met before remitting payments abroad.
In this page, we will provide you with an in-depth understanding of Form 15CA and Form 15CB, their importance, the process of filing, and how our expert team can guide you through it.
What is Form 15CA and 15CB?
Form 15CA
Form 15CA is a declaration form that has to be filed by a person who is making a payment to a non-resident or a foreign company. It is a statement required under Section 195 of the Income Tax Act, 1961, for the remittance of any amount to a foreign country.
The form is used to ensure that the remitter (payer) has complied with the tax deduction at source (TDS) provisions applicable under Indian tax laws before making a payment or transfer abroad.
Form 15CA serves the purpose of:
- Disclosing remittance details: It provides a transparent way for tax authorities to verify that the appropriate taxes have been paid on the funds being remitted outside India.
- Tax Deduction Compliance: Ensures that the remitter has deducted the necessary TDS before remitting payments to non-residents.
Form 15CB
Form 15CB is a certification form that needs to be signed by a Chartered Accountant (CA). The CA verifies and certifies that the TDS (Tax Deducted at Source) has been correctly deducted, as per the provisions of the Income Tax Act.
Form 15CB provides the necessary confirmation regarding the correctness of TDS deductions and ensures compliance with the applicable tax laws. This certification is mandatory in most cases when the remittance exceeds ₹5 lakh in a financial year.
In essence, Form 15CB serves as:
- A report on TDS compliance: It confirms that TDS has been deducted and deposited with the government.
- A certificate for foreign remittance: It is mandatory for remittances exceeding ₹5 lakh per annum to a non-resident or foreign entity.
Who Needs to File Form 15CA and 15CB?
The filing of Form 15CA and 15CB is applicable to:
- Individuals, companies, and firms making payments to non-residents or foreign entities.
- Payments exceeding ₹5 lakh in a financial year made to non-residents, such as:
- Royalty payments
- Technical fees
- Interest payments
- Dividends
- Income from investments
- Payments made for services or goods that are provided by non-residents.
- Businesses that engage in foreign transactions such as export payments, professional fees, consultancy fees, etc.
- Foreign remittances for business transactions, investments, or for personal purposes like gifts or donations to foreign entities.
Why is Form 15CA and 15CB Required?
The Government of India introduced Form 15CA and Form 15CB filing requirements to ensure compliance with the Tax Deduction at Source (TDS) provisions while remitting money abroad. These forms serve the following purposes:
- Tax Compliance: Ensures that the correct amount of tax is deducted before sending money abroad.
- Prevention of Tax Evasion: Helps in preventing tax evasion by verifying that the appropriate taxes have been paid on international remittances.
- Transparency in Foreign Transactions: Provides a transparent reporting mechanism for payments made to non-residents, ensuring the tax authorities have access to accurate information about these payments.
- Regulatory Requirement: Helps businesses and individuals comply with the Income Tax Act, 1961 while making foreign payments.
Process of Filing Form 15CA and 15CB
Step 1: Form 15CB Certification (Chartered Accountant’s Role)
Before filing Form 15CA, the remitter (payer) must first obtain a Form 15CB certification from a Chartered Accountant (CA). The CA reviews the relevant documents to verify:
- The nature of the payment being made.
- Whether the applicable TDS has been deducted as per the Income Tax Act.
- The applicable tax treaties (if any) between India and the recipient’s country.
- Tax deduction details, including the correct TDS rate and amount.
Once the CA is satisfied with the compliance, they provide a Form 15CB certificate.
Step 2: Filing Form 15CA
Once you have the Form 15CB certificate from the Chartered Accountant, you can proceed with Form 15CA filing. Form 15CA can be filed online on the Income Tax Department’s e-filing portal. The process includes the following steps:
- Login to the e-filing portal: Access the Income Tax e-filing portal and log in using your credentials.
- Fill in the required details: Provide details about the payer, recipient, and the nature of the payment being made to the non-resident.
- Upload Form 15CB: Attach the Form 15CB certificate issued by the Chartered Accountant.
- Submit Form 15CA: After filling in the details and attaching the required documents, submit Form 15CA online.
- Obtain Acknowledgment: After submission, you will receive an acknowledgment receipt with a unique acknowledgment number, which you need to keep for your records.
Step 3: Bank Submission (If Applicable)
In some cases, the bank may also require a copy of Form 15CA and Form 15CB for processing the foreign remittance. The payer needs to provide these documents to the bank along with the remittance details for processing the payment.
Key Details to be Filled in Form 15CA
- Details of the remitter (individual, company, or firm) making the payment.
- Details of the non-resident or foreign company receiving the payment.
- Nature of the payment (e.g., royalty, technical fees, interest, etc.).
- Amount of payment to be remitted.
- Tax deduction details such as the TDS amount deducted and deposited, if applicable.
- Tax treaty details (if any) to justify lower or exempt tax deduction.
Penalties for Non-Compliance
Failure to file Form 15CA and Form 15CB or non-compliance with TDS provisions can result in:
- Penalties for not deducting the appropriate amount of tax.
- Delays in remittance processing, as banks will not process foreign remittances without these forms.
- Interest on delayed TDS payments.
- Legal action by the tax authorities for tax evasion or non-compliance with the Income Tax Act.
Why Choose Deepak Prakash & Associates for Form 15CA and 15CB Filing?
At Deepak Prakash & Associates, we provide end-to-end Form 15CA and 15CB filing services to ensure that your business remains compliant with the tax laws when making international payments. Here’s why you should choose us:
- Expert Chartered Accountants: Our team of skilled Chartered Accountants ensures that Form 15CB is correctly certified and complies with all the necessary requirements.
- Seamless Filing Process: We handle the entire filing process, from documentation to the final submission of Form 15CA and Form 15CB, making it hassle-free for you.
- Timely Filing: We ensure timely submission of your forms, preventing delays in foreign remittance and avoiding penalties.
- Comprehensive Support: We offer full support throughout the filing process and are always available to assist with any queries you may have.
- Cost-Effective Services: Our services are competitively priced, ensuring that you can remain compliant without overpaying for the process.
