Applicability of Form 15CB

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Jivan (Querist)
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02 October 2010 Dear Expert,
My client's son is studying in USA and client now want to remit educational fees to the University based in USA. My question is "Whether Form CB certificate is required to be given for remittance of educational fees to an University based in USA. Total remittance of fees is Rs.500231/- (USD 10934)? Pls advise.

CA.Pankaj Shah

CA.Pankaj Shah (Expert)
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04 October 2010 Form 15 CB is required for any foreign remittance. Form 15CB is prescribed under Section 195(6) of the Income tax Act as any Foreign remittance should have tax clearance in FEMA. All Authorised dealers / Banks have to ensure for it. This would be simple as no tax is required to be deducted on the subject remittance in terms of Article 12 of India USA DTAA which specifically excludes Education from Fees for included services.