It is common nowadays, that services are received from outside India and payments are made for the same to residents of abroad countries. There are various methods of transferring money abroad. However, payments made to non-residents are required to be certified by a Chartered Accountant. Banks accept payments to abroad only if they are accompanied by a Chartered Accountant’s certificate. This was brought into force to ensure that tax is collected at the stage of payment since collecting it at a later stage may be difficult
The Chartered Accountant basically certifies the rate of tax and the amount of tax deducted at source for the amount of remittance made. According to section 195 of the Income Tax Act, 1961, the person making the payment to a non-resident shall furnish Forms 15CA (Undertaking) and 15CB (Chartered Accountant Certificate)to the bank in order for the remittance to be made
Form 15CA
Form 15CA is an undertaking that is required to be furnished by the person making the payment.
It contains details such as amount of proposed remittance, date of remittance, tax deducted at source, etc.
This form can be filled up only after obtaining Form 15CB from a Chartered Accountant
Form 15CA will be submitted to the concerned bank along with Form 15CB. Unless and otherwise all mandatory fields are filled up in Form 15CA, the form cannot be generated online.
It also needs to be ensured that the details provided in both forms, match with each other since discrepancies may result in complications
Form 15CB
Form 15CB is a certificate obtained from a Chartered Accountant in accordance with the provisions of the Income Tax Act, 1961. The format of Form 15CB is as prescribed by the Central Board of Direct Taxes (CBDT)
The Form should contain the membership number of the Chartered Accountant who is certifying the same
For any assistance in remittance to non-residents and certification relating to the same, please contact us at info@cogzidel.in
