Central Board of Direct Taxes (CBDT) has issued a Press Release dated 17th December, 2015 and a Notification No. G.S.R. 978(E) dated 16th December, 2015 to amend Rule 37BB of the Rules for the furnishing of information in respect of payments made to a non-resident, summarized below:
Section 195 of the Income-tax Act empowers the CBDT to capture information in respect of payments made to non-residents, whether chargeable to tax or not. Rule 37 BB of the Income-tax Rules has been amended vide Notification No. G.S.R. 978(E) dated 16th December, 2015 to strike a balance between reducing the burden of compliance and collection of information under section 195 of the Act.
As per amended Rules, a person responsible for making a payment to a non-resident, not being a company or to a foreign company has to provide the following details —
Furnishing of information in form 15ca
1. When payment is chargeable under the provisions of Income-tax Act, 1961 and does not exceed Rs. 5 Lac during the financial year, in such case
Information is required in Part A (Format Attached) of Form 15CA
2. When payment is chargeable under the provisions of Income-tax Act, 1961 and exceeds Rs. 5 Lac during the financial year, in such case
Information is required in Part B (Format Attached) of Form 15CA, after obtaining –
Information is required in Part C (Format Attached) of form 15CA, after obtaining –
3. When payment is not chargeable under the provisions of Income-tax Act, 1961, in such case
Information is required in Part D (Format Attached) of Form 15C
However, in the following cases no submission of information is required:-
3.1 The remittance is made by an individual and it does not require prior approval of Reserve Bank of India [as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000]; or
3.2 The remittance is of the nature specified in the list provided in Rule 37BB(3) (List Attached). Following are the five new exempt payment types:-
Ø Advance payment against imports
Ø Payment towards imports-settlement of invoice
Ø Imports by diplomatic missions
Ø Intermediary trade
Ø Imports below Rs. 5,00,000-(For use by ECD offices)
FURNISHING OF INFORMATION IN FORM 15CB:
The Certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems).
Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To prefill the details in Part C of Form 15CA, the Acknowledgment number of e-Filed Form 15CB should be provided.
Hence, 15CB shall be furnished online by chartered accountant itself from 01.04.2016. To give effect the same, there is a requirement of adding CA under the Login details of Person filing Form 15CA in its Income Tax Portal before filing online Form 15CB by the chartered accountant.
Note: Form No. 15CB for payments made to non-residents will only be required to be furnished, if the following two conditions are satisfied:
(i) Payments are taxable under Income Tax Act, 1961; and
(ii) Payments exceed Rs. 5 Lac during the year.
For reference, Formats of Part-A/B/C/D of Form 15CA and List of specified nature remittances has been attached herewith.