Short Note on Applicability, Documents Required & Non-Compliance for Form 15CB

Short Note on Applicability, Documents Required & Non-Compliance for Form 15CB

Form 15CB – Applicability, Documents Required & Non-Compliance

ParticularDetailsRelevant Section/Rule
Applicability  
RemitterResident making payment to a non-residentSec. 195
TaxabilityRemittance chargeable to tax under the Income-tax ActSec. 5, Sec. 9, Sec. 195
TDS RequirementTax deductible at appropriate rateSec. 195, Sec. 90(2)
Rule 37BB ExemptionsNot required for 33 specified transactionsRule 37BB(3)
Filing of Form 15CAPart C to be filed if tax deductible and supported by Form 15CBRule 37BB(2)
Documents Required  
Invoice/AgreementTo identify nature and amount of remittanceSec. 195
TRC (Tax Residency Certificate)Claim DTAA benefitSec. 90(4), Rule 21AB
PAN of RemitterMandatory for remitter identificationSec. 139A
Beneficiary & Bank DetailsRequired to link parties and trace remittanceRule 37BB(2)
Form 10F & No PE DeclarationProof of tax residency and no fixed base in IndiaSec. 90(5), Rule 21AB(1)
Bank Advice/Remittance ProofSupporting documentation for correctnessRule 37BB
TDS Working/CA ComputationFor CA to certify correct rate of deductionSec. 195(6), Form 15CB
Consequences of Non-Compliance  
Not obtaining Form 15CBBank may deny remittance; violation of tax/FEMA obligationsSec. 195 r/w Rule 37BB
Incorrect CertificationCA liable for ₹10,000 penalty per incorrect reportSec. 271J
Non-deduction of TDSInterest @1%/1.5% per month, disallowance of expense, penaltiesSec. 201(1A), Sec. 40(a)(i)
Non-filing of 15CA/15CBPenalty ranging from ₹10,000 to ₹1,00,000Sec. 271H


Statutory Sources:

• Income-tax Act, 1961

• CBDT Notification No. 93/2015

• Rule 37BB – Income-tax Rules, 1962

ConsultCAOnline

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