1. What is Form 15CB?
Form 15CB is a certification issued by a Chartered Accountant (CA) in situations where payments exceeding ₹5 Lakh in a financial year, chargeable to income tax, are made to a Non-Resident (excluding companies) or a Foreign Company, and no certificate under Section 195/197 from the Assessing Officer is obtained. This form provides details of the payment, including the TDS rate, TDS deduction, and the nature and purpose of the remittance. Essentially, Form 15CB serves as a Tax Determination Certificate, wherein the CA examines the remittance against relevant chargeability provisions.
2. Who Can Use Form 15CB?
Form 15CB can only be accessed and submitted by a CA who is registered on the e-Filing portal. Additionally, the taxpayer must assign the Form 15CB to the CA for certification of the details.
3. Purpose of Certification in Form 15CB
Form 15CB serves as a Tax Determination Certificate, allowing the CA to examine the remittance under the provisions of Sections 5 and 9 of the Income Tax Act and any applicable Double Taxation Avoidance Agreements (DTAA).
4. Is Filing Form 15CB Mandatory Before Filing Form 15CA (Part C)?
Yes, Form 15CB must be uploaded before filing Part C of Form 15CA. The details in Part C are prefilled using the Acknowledgement Number of the e-verified Form 15CB.
5. Modes of Filing Form 15CB
Form 15CB can be filed and submitted either online or offline. The offline utility for statutory forms provides an alternative mode of filing.
6. Verification and Submission Timeline
Form 15CB requires e-Verification using a Digital Signature Certificate (DSC). The CA’s DSC must be registered on the e-Filing portal. While there is no prescribed time limit for submission, the form must be filed before the remittance is made.
7. Overview of Form 15CB
Form 15CB is applicable for payments to Non-Residents or Foreign Companies exceeding ₹5 Lakh in a financial year, provided the payments are taxable. It is an event-based form, requiring certification by a CA for every remittance meeting these conditions. The form can be submitted online or offline, with no specific deadline prescribed for filing.
8. Prerequisites for Availing Form 15CB Service
To use Form 15CB, the following conditions must be met:
- The CA should be registered on the e-Filing portal as a Chartered Accountant.
- The CA’s PAN must be active.
- A valid and non-expired DSC should be available with the CA.
- The taxpayer must assign Form 15CB Part-C to the CA.
9. Components of Form 15CB
Form 15CB includes six main sections:
- Certification: Includes the certification details provided by the accountant.
- Remittee Details: Captures the recipient’s profile.
- Remittance Details: Records the remittance amount and bank details.
- Taxability under Income-Tax Act (without DTAA): Determines if the remittance is taxable in India.
- Taxability under Income-Tax Act (with DTAA Relief): Documents income details if DTAA relief is applicable.
- Accountant Details: Provides the CA’s information, including name, firm, membership ID, and address.
10. Steps to Submit Form 15CB Online
- Log in: Log in to the e-Filing portal with valid CA credentials.
- Navigate: Click on e-File > Income Tax Forms > File Income Tax Forms.
- Select Form: Choose Form 15CB from the list or use the search box.
- Submission Mode: Select ‘Online’, choose the financial year, and click ‘Continue’.
- Start Process: Enter the taxpayer’s PAN and proceed. Ensure PAN is linked to Aadhaar.
- Fill Details: Complete the form with required details.
- Preview and Verify: Preview the form, then e-Verify using DSC.
- UDIN Entry: Enter the Unique Document Identification Number (UDIN) or opt to update it later.
- Submit: After e-Verification, a success message with Transaction ID and Acknowledgement Number will be displayed. Save these for reference.
11. Conclusion
Form 15CB is a critical compliance form for remittances to Non-Residents or Foreign Companies. By certifying the tax implications of such payments, it ensures adherence to the Income Tax Act and DTAA provisions. Accurate and timely filing of this form is essential for smooth processing of international remittances.
How a CA Can Help with Form 15CA and 15CB Filing
A Chartered Accountant (CA) plays a vital role in ensuring compliance when making payments to non-residents or foreign companies. They assess the applicability of filing Form 15CA and 15CB based on the payment’s nature, purpose, and taxability.
For Form 15CB, the CA certifies payment details, including TDS rate, tax deductions, and the remittance’s nature, ensuring accuracy. They analyze the payment under Sections 5 and 9 of the Income Tax Act and apply Double Taxation Avoidance Agreement (DTAA) provisions where applicable. This certificate serves as a prerequisite for filing Part C of Form 15CA.
In Form 15CA, the CA helps prefill details using the acknowledgment number from Form 15CB. They ensure compliance by verifying tax computations and guiding the taxpayer through the e-Filing portal for timely submission.
Additionally, CAs handle complex cases involving multiple jurisdictions and DTAA benefits, ensuring accurate tax deductions. They also assist in offline filing using the statutory utility and verify forms using their Digital Signature Certificate (DSC).
By ensuring accurate filings and compliance with regulations, a CA helps avoid penalties and simplifies the process for individuals and businesses involved in international transactions. Consulting a CA ensures hassle-free and efficient tax compliance.
