15CA 15CB Procedure In case of payment to foreign party

These forms are required in case of foreign payments

Earlier,these forms used to be filled for import fo goods and services both

Now,these are required to be filled only in case of services(now they are not to be filled for goods)

 

We need to fill these forms and give it to bank.Only then Bank wil make payments to foregin parties

These forms contain details of TDS Deduction on foreign Payments

TDS is to be deducted as per

Rates of Income Tax( Section 195 etc)

or

Rates as per DTAA(Double Tax Avoidance Agreement signed by India with foreign countries)(

whichever is less

 

Chartered Accountant checks Rates as per Income Tax and Rates as per DTAA and issues Form 15CB 

This is filed online at incometaxwebsite by using his digital signature

 

On basis of 15CB,Company have to fill Form 15CA using directors digital signature

(In many companies,Chartered Accountant fills both forms 15CB and 15CA)

 

Both 15CB and 15CA are to be submitted to bank,only then bank makes payment to foreign Party

 

 

Note 

In some cases,only 15CA is filled,not 15CB 

There are 4 parts of 15CA like

 

Part A - To be filled up if the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, does not exceed five lakh rupees during the financial year.

 

 

Part B - To be filled up if the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.

 

 

Part C - To be filled up if the remittance is chargeable to tax under the provisions of Income-tax Act, 1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288 has been obtained

 

 

Part D - To be filled up if the remittance is not chargeable to tax under the provisions of the Income-tax Act,1961 {other than payments referred to in rule 37BB(3)} by the person referred to in rule 37BB(2).

 

 

 

Note :

 

15CB Is required only in case of In case of Part C

 

For Depositing this TDS,Normal TDS Challan 281 Is used

However,for Return,TDS Form is Form 27Q in case of TDS Non Salary

Due dates and Procedures are same