By Shiromani Associates – Chartered Accountants
In today’s global business environment, cross-border transactions are increasingly common. However, when making any remittance to a non-resident or foreign entity, it is essential to ensure compliance with the provisions of the Income-tax Act, 1961—specifically under Section 195, which mandates Tax Deducted at Source (TDS) on payments made to non-residents if such payments are chargeable to tax in India.
To ensure transparency and compliance, the Income Tax Department requires the filing of Form 15CA and, where applicable, Form 15CB.
Form 15CA is an online declaration that must be submitted by a resident remitter prior to making any payment to a non-resident or foreign company. This form serves as a mechanism for the Income Tax Department to track foreign remittances and ensure proper TDS compliance.
Form 15CB is a Chartered Accountant’s Certificate that certifies the nature of the remittance and the applicable tax liability as per the provisions of the Income-tax Act and relevant Double Taxation Avoidance Agreements (DTAAs). This form is required to be obtained before uploading Form 15CA (in applicable cases).
To initiate the preparation and submission process, the following details and documents are required:
Name of the Remitter
Address of the Remitter
PAN of the Remitter
Principal Place of Business of the Remitter
Email ID and Contact Number of the Remitter
Status of the Remitter (e.g., Individual, Firm, Company, Trust, etc.)
Details of the Beneficiary/Remittee, including name, address, country, and status
Nature and Purpose of Remittance
Amount of Remittance (in INR and foreign currency)
Relevant Invoice/Contract Copy
Bank Details and SWIFT code of the foreign beneficiary
Tax Residency Certificate (TRC) of the beneficiary (if available)
Applicable provisions under Income Tax Act or DTAA
As experienced Chartered Accountants, we offer comprehensive assistance with:
Evaluating taxability of the transaction under Indian laws and DTAA
Issuance of Form 15CB after due diligence and documentation
Preparation and online submission of Form 15CA
Coordinating with authorized banks for smooth processing of foreign remittance
Advisory on withholding tax rates, exemptions, and treaty benefits
Maintaining regulatory compliance with Section 195 of the Income-tax Act