Rule 37BB of the Income-tax Rules, 1962 (the Rules) provides the information are required to be furnished by a person while making payment to a non-resident. This information is required to be furnished in Form No. 15CA and a certificate from a Chartered Accountant (CA) is required to be obtained in Form No. 15CB. Further, Form No. 15CA shall be furnished electronically to the website designated by the Income tax department and thereafter a signed copy (in physical form) shall be submitted prior to remitting the amount.
Following are the changes effective from April 1, 2016 vide NOTIFICATION NO. 93/2015 [G.S.R 978(E)], DATED 16-12-2015. Rule 37BB is being substituted to provide as under:
- Information in Part A of Form No.15CA is required to be furnished, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year is doesn’t exceed five lakh rupees;
- For payments other than the payments referred in point 1, the information required to be furnished,-
- in Part B of Form No. 15CA after obtaining,-
- a certificate from the Assessing Officer under section 197; or
- an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195;
- in Part C of Form No. 15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288.
- in Part B of Form No. 15CA after obtaining,-
- Information in Part D of Form No. 15CA is required to be furnished, if any sum is not chargeable to tax under the provisions of Income tax Act.
However no information is required to be furnished in Part-D, if remittance is in nature mentioned in the Specified List.
Some distinguishing aspects are highlighted here-in-below:
- Requirement for obtaining 15CB from Chartered Accountant dispensed if the payment does not exceed INR 500,000 made to a Non-Resident in a year. The payer can itself determine the taxability on such amounts and do a compliance accordingly.
- No requirement of 15CB certificate from Chartered Accountant in case where payments falls under Specified List – The list has now been expanded from 28 to 33, including payments for imports. Following are the five new exempt payment types:
- Advance payment against imports
- Payment towards imports-settlement of invoice
- Imports by diplomatic missions
- Intermediary trade
- Imports below ₹ 5,00,000 (For use by ECD offices)
The amended Rules will become applicable from 01.04.2016
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