Form for foreign payment

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Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2015 Director of a company made the foreign remittance on behalf of the company without filling any form i.e Form 15 CA & 15CB
and later on company made the reimbursement to directors. Now, what are the tax implications and status of Form 15CA & 15CB.
Do company neeed to file Form 15CA & 15CB?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 June 2015 The Form clearly states that it needs to be filled only if the remittance is chargeable to tax in India. Therefore on the first blush it appears crystal clear that Form 15CA is not required to be filled if the remittance/ payment to non-resident are not chargeable to tax.
In fact this Form 15CB is the Tax Determination Certificate where the Issuer CA examines the remittance having regard to chargeability provisions under Section 5 and 9 of Income tax Act along with provisions of Double tax Avoidance Agreements with the Recipient’s Residence Country. Therefore in my opinion, it is advisable to obtain 15CB even in cases where 15CA is not mandated. Though there is no penal provision prescribed in the Act if such Certificates in Form 15CB and Declaration in Form 15CA are not obtained, but it is in the interest of Assessee to have a tax determination in Form 15CB from a CA, since Non-resident taxation involves various complex issues and the consequences of Non deduction are severe.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2015 Thanks for your reply sir,
But there is amendment w.e.f. 1st June, 2015, u/s 195(6) that either transaction is chargeable to tax or not but the person who is remitting must obtain Form 15CA & 15CB,
And
Our query is, in our transaction who has to file the form i.e. either Director or company.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 June 2015 The remittance is on behalf of the company so the company has to file.

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