Suppose you are an Indian resident making payments to a foreign entity or receiving payments from a foreign entity. In that case, it is mandatory to comply with the legal provisions of the Income Tax Act 1961. According to the Act, you must file Form 15CA and 15CB with the tax authorities before remitting funds to a foreign entity. Filing these forms can be complex, requiring extensive knowledge of tax laws and regulations. IndiaFilings can assist you in navigating the process of filing 15CA-15CB with ease; our team of experts ensures that your compliance requirements are met without any hassle.
As per Section 195 of the Income Tax Act 1961, any individual or entity responsible for making payment to a non-resident, which includes a foreign company, must deduct income tax at the applicable rate prior to the payment being made.
The remitter must also submit an undertaking in Form 15CA, which provides details of the payment being made to the non-resident. Furthermore, a certificate in Form 15CB, attested by a chartered accountant, is required for payments exceeding INR 5 lakh. This certificate provides details of the nature of the payment, the tax rate applied, and the amount of tax deducted.
Form 15CA and Form 15CB are necessary forms that must be submitted under the Income Tax Act, 1961, for any payments made by a resident to a non-resident.
Form 15CA is a declaration made by the person making the payment. In contrast, Form 15CB is a certificate issued by a Chartered Accountant (CA), ensuring that the provisions of the Income Tax Act and the Double Taxation Avoidance Agreement have been complied with.
Both these forms are essential for ensuring timely and accurate reporting of any payments made to non-residents and for ensuring that taxes are collected on time.
Form 15CA is a declaration of remittance made to a non-resident by an individual or a company. It is a mandatory form to be submitted online on the income tax department's website before remitting a non-resident. The purpose of this form is to enable the income tax department to track foreign remittances and ensure that the remitter is paying taxes according to the provisions of the Income Tax Act.
As mentioned above, Form 15CB is a certificate issued by a CA under Section 195(6) of the Income Tax Act, 1961, for making payments to non-residents or foreign companies. It is used to verify that the payment being made complies with the provisions of the Income Tax Act and DTAA, if any, between India and the foreign country.
Form 15CA and 15CB are applicable for making foreign remittances under India's Income Tax Act 1961. The applicability of these forms depends on the nature and amount of the remittance.
Applicability of Form 15CA is as follows:
As per the latest rules and regulations, the payments where Form 15CA & 15CB are not required include the following:
Form 15CA/15CB is segregated into sections based on various situations. The applicant needs to go through the form and fill in the proper details in the relevant section:
Form 15CA has four parts based on the amount of remittance and the requirement of other certificates or orders under the Income Tax Act.
The penalty for not filing or late filing of Form 15CA-15CB is Rs. 10,000 per instance.
To file Form 15CA and 15CB, the following details are required:
The process for filing Form 15CA and 15CB is as follows:
Note that the procedure for filing Form 15CA and Form 15CB may vary depending on the specific transaction and other factors.
IndiaFilings can help you file Form 15CA-CB, from preparation to submission, and ensure that you comply with all the applicable regulations.
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
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