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- How to fill Form 15CB - Clause 1-9 - Withholding Tax from Payments to Non-resident - CA Arinjay Jain
Purpose of Form 15CB
Form 15CB is the Form, in which a Chartered Accountant, is required to certify the tax that should be deducted from specified payments to the non-resident , which is the subject matter of such certificate (Section 195(6)). Such Form 15CB has to be obtained , before paying any sum to non-resident , whether or not the payment is chargeable to tax , and has to be filed online.
Relevant Factors to be considered in making decision on , which Part of Form 15CB needs to be filed are as under : -
Whether remittance is chargeable to tax or is not chargeable to tax under Income Tax Act , 1961 ?
Whether remittance is less than or more than Rs 5 lakhs ?
Whether certificate of AO is obtained for nil or lower deduction of TDS ?
Whether payments covered under Specified list ?
Once these items are identified, the Payor would be required to furnish Form 15CA/Form 15CB as per the following table : -
Payments to non-resident for which no form 15CA / Form 15CB to be filed
However, Form 15cb is not required to be obtained in the case of the following specified transactions : -
When to file form 15CB ?
1)When payment is chargeable to tax
Form 15CB should be filed when payment to non-resident is chargeable to tax under the Income Tax Act.
EXAMPLE:- No Form 15CB shall be filed for income exempt u/s 10
Form 15CB should also be filed when payment to non-resident is chargeable to tax under the Income-Tax Act but it is exempt from tax under DTAA
EXAMPLE:- Form 15CB shall be filed for capital gains which are taxable under the Income Tax Act but exempt from tax under India Singapore DTAA.
2)When aggregate payment is more than Rs 5 lakhs
Form 15CB shall be filed when single payment does not exceed Rs 5 lakhs but aggregate payment during the FY would exceed Rs 5 lakhs
EXAMPLE :-
ECB interest of Rs 4 lakhs to be paid per quarter during FY 2017-18 . In this case Form 15CB shall be filed as amount of Rs 16 lakhs would be paid in the entire FY 2017-18
No Form 15CB shall be filed when payment to non-resident does not exceed Rs 5 lakhs and no further payment would be paid to such non-resident during such FY.
