Form 15CA-CB Filing Services
Form 15CA-CB Filing Services by Deepak Prakash & Associates
In India, when making payments to foreign entities or individuals, certain tax compliance requirements must be fulfilled to ensure that the transaction complies with the Income Tax Act. One of these requirements is the filing of Form 15CA and Form 15CB. These forms are primarily used to report foreign remittances and ensure that the correct tax deductions at source (TDS) are applied.
At Deepak Prakash & Associates, we specialize in assisting individuals, businesses, and organizations with the Form 15CA-CB filing process, ensuring that you remain compliant with the tax regulations surrounding international payments.
In this comprehensive guide, we’ll walk you through Form 15CA and Form 15CB, the importance of filing these forms, and how our expert team can help you navigate the complexities of foreign remittance tax compliance.
What is Form 15CA?
Form 15CA is a declaration form that is required to be submitted when an individual or entity is making a foreign remittance to a non-resident or a foreign entity. It is used to report the details of the payment being made to ensure that the correct TDS has been deducted or to certify that no TDS is applicable.
Form 15CA needs to be submitted online to the Income Tax Department and contains important information about the remitter (the person or company making the payment), the payee (the foreign entity or individual receiving the payment), and the nature of the remittance.
Key Information in Form 15CA:
- Details of the remitter: Name, PAN, address, and other identifying details.
- Details of the recipient: Name, country of residence, and other necessary details of the foreign entity or individual.
- Nature of the payment: Description of the payment being made (e.g., royalty, interest, professional fees, etc.).
- TDS Details: The amount of TDS, if any, that has been deducted or will be deducted on the foreign remittance.
- Payment Amount: Total amount being transferred or remitted to the foreign entity.
Form 15CA is divided into four parts, and the section of the form to be filled depends on the TDS applicability and whether the remittance is subject to tax under the Double Taxation Avoidance Agreement (DTAA) or not.
What is Form 15CB?
Form 15CB is a certification form issued by a Chartered Accountant (CA). It certifies that the correct TDS has been deducted on the foreign remittance or that no TDS is applicable. This form is required to be submitted along with Form 15CA for payments that exceed a certain threshold, as prescribed by the Income Tax Department.
The Chartered Accountant reviews the remittance and confirms whether the appropriate TDS has been applied or if any exemptions or reductions are applicable under the Double Taxation Avoidance Agreement (DTAA).
Key Information in Form 15CB:
- Details of the remittance: Information regarding the payment, including the name of the remitter and the recipient.
- Review of TDS: A verification of whether TDS is deducted correctly, or if exemptions apply under DTAA.
- Tax Rate and Calculation: The rate of TDS applicable to the payment and confirmation that the correct tax has been applied.
Form 15CB is prepared and signed by a qualified Chartered Accountant who examines the remittance and ensures that it complies with the provisions of the Income Tax Act and DTAA, if applicable.
When is Form 15CA and 15CB Required?
Form 15CA and Form 15CB are mandatory in cases of remittances made to non-residents for payments exceeding the prescribed threshold. The threshold limit varies depending on the nature of the payment. However, for most payments to foreign entities, these forms are required if the payment exceeds ₹5,00,000 in a financial year.
Here are some common scenarios in which Form 15CA and Form 15CB must be filed:
- Payment for Professional Fees or Royalty: Payments made for services like consultancy, legal fees, technical services, or royalties to non-residents.
- Interest Payments: Interest payments to non-residents, including loans and credit facilities.
- Payments for Purchase of Goods: Payments to foreign suppliers for goods or services rendered.
- Dividend Payments: Payments made to foreign shareholders or investors.
- Other Income: Payments made to foreign entities for any other reason, including for the transfer of property or for renting assets.
In most cases, the remitter (the person or company making the payment) is required to file Form 15CA online, and if the payment exceeds the specified threshold, Form 15CB must also be submitted by the Chartered Accountant.
Why Choose Deepak Prakash & Associates for Form 15CA-CB Filing?
At Deepak Prakash & Associates, we provide end-to-end services for Form 15CA and 15CB filing, ensuring that all foreign remittances are processed in compliance with Indian tax laws. Our team of experienced Chartered Accountants will help you navigate the complexities of cross-border tax compliance and ensure that all forms are filed accurately and on time.
Here’s how we can help:
- Expert Guidance on Taxation: We provide expert advice on the applicability of TDS and the exemptions available under DTAA.
- Preparation of Form 15CB: Our Chartered Accountants will review your remittance, verify tax calculations, and prepare Form 15CB.
- Seamless Filing of Form 15CA: We will assist you with the online filing of Form 15CA, ensuring all details are correctly entered.
- Compliance Assurance: We ensure that your foreign remittance complies with all the provisions of the Income Tax Act, avoiding penalties or delays.
- Timely Filing: We will ensure that both Form 15CA and Form 15CB are filed before the payment is processed to ensure smooth transactions.
