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CACB Certificate in India for Overseas

Complying with Form 15CA and Form 15CB is important for making payments to non-residents. This includes deducting tax as per the Income Tax Act or DTAA provisions. Hence, Form 15CA and Form 15CB can be a time-consuming process, requiring documentation and approval from a Chartered Accountant.

The income tax department has revised the rules relating to the preparation & submission of Form 15CA and Form 15CB.

The significant changes are as follows –

Form 15CA and 15CB which does not require RBI approval will NOT be required to be furnished by an individual for remittance.
List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports.
Form No.15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds INR 5 lakh.

A person responsible for making a payment to a non-resident or a foreign company has to provide the following details:

When payment made is below Rs 5 lakh: For such payments information is required to be submitted in Part A of Form 15CA.
When payment made exceeds Rs 5 lakh:
The following documents are required to be submitted:
- Part B of Form 15CA has to be provided
- Certificate in Form 15CB from an accountant
- Part C of Form 15CA
When the payment made is not chargeable to tax under the Income Tax Act: Part D of Form 15CA is required to be submitted.

In the following cases, no submission of information is required:

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].
The remittance is of the nature specified in the list below:

Overall list of payments where no forms 15CA and 15CB are required are as follows (Rule 37BB):

Sl. No.	Nature of Payment
1	Indian investment abroad - in equity capital (shares)
2	Indian investment abroad - in debt securities
3	Indian investment abroad - in branches and wholly owned subsidiaries
4	Indian investment abroad - in subsidiaries and associates
5	Indian investment abroad - in real estate
6	Loans extended to Non-Residents
7	Advance payment against imports
8	Payment towards imports - settlement of invoice
9	Imports by diplomatic missions
10	Intermediary trade
11	Imports below Rs.5,00,000 - (For use by ECD offices)
12	Payment for operating expenses of Indian shipping companies operating abroad.
13	Operating expenses of Indian Airlines companies operating abroad
14	Booking of passages abroad - Airlines companies
15	Remittance towards business travel.
16	Travel under basic travel quota (BTQ)
17	Travel for pilgrimage
18	Travel for medical treatment
19	Travel for education (including fees, hostel expenses etc.)
20	Postal Services
21	Construction of projects abroad by Indian companies including import of goods at project site
22	Freight insurance – relating to import and export of goods
23	Payments for maintenance of offices abroad
24	Maintenance of Indian embassies abroad
25	Remittances by foreign embassies in India
26	Remittance by non-residents towards family maintenance and savings
27	Remittance towards personal gifts and donations
28	Remittance towards donations to religious and charitable institutions abroad
29	Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30	Contributions or donations by the Government to international institutions
31	Remittance towards payment or refund of taxes.
32	Refunds or rebates or reduction in invoice value on account of exports
33	Payments by residents for international bidding.