In Finance Bill 2015, a new sub-section 6 has been added to Section 195
In section 195 of the Income-tax Act, for sub-section (6), the following sub-section shall be substituted with effect from the 1st day of June, 2015, namely:— "(6) The person responsible for paying to a non-resident, (not being a company), or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.".
* Details in relation to above Form is provided in rule 37BB and Form Nos. 15CA & 15CB
After section 271H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2015, namely:— "271-I. If a person, who is required to furnish information under sub-section (6) of section 195, fails to furnish such information, or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of one lakh rupees.".
Which means from June 1, 2015 on all payments made to non resident or foreign company Form 15CA and Form 15CB is applicable; except for payments under specified list (given below).
From Buyers Credit respective, as per our interpretation, Form 15CA and Form 15CB will still not be applicable to payments made to Indian Bank Overseas Branches as parent of the same is resident and above clarification hold true only for non-resident, (not being a company), or to a foreign company.
Specified List
| Sl.No. | Purpose code as per RBI | Nature of payment | |
| (1) | (2) | (3) | |
| 1 | S0001 | Indian investment abroad -in equity capital (shares) | |
| 2 | S0002 | Indian investment abroad -in debt securities | |
| 3 | S0003 | Indian investment abroad -in branches and wholly owned subsidiaries | |
| 4 | S0004 | Indian investment abroad -in subsidiaries and associates | |
| 5 | S0005 | Indian investment abroad -in real estate | |
| 6 | S0011 | Loans extended to Non-Residents | |
| 7 | S0202 | Payment- for operating expenses of Indian shipping companies operating abroad. | |
| 8 | S0208 | Operating expenses of Indian Airlines companies operating abroad | |
| 9 | S0212 | Booking of passages abroad -Airlines companies | |
| 10 | S0301 | Remittance towards business travel. | |
| 11 | S0302 | Travel under basic travel quota (BTQ) | |
| 12 | S0303 | Travel for pilgrimage | |
| 13 | S0304 | Travel for medical treatment | |
| 14 | S0305 | Travel for education (including fees, hostel expenses etc.) | |
| 15 | S0401 | Postal services | |
| 16 | S0501 | Construction of projects abroad by Indian companies including import of goods at project site | |
| 17 | S0602 | Freight insurance – relating to import and export of goods | |
| 18 | S1011 | Payments for maintenance of offices abroad | |
| 19 | S1201 | Maintenance of Indian embassies abroad | |
| 20 | S1 202 | Remittances by foreign embassies in India | |
| 21 | S1301 | Remittance by non-residents towards family maintenance and-savings | |
| 22 | S1302 | Remittance towards personal gifts and donations | |
| 23 | S1303 | Remittance towards donations to religious and charitable institutions abroad | |
| 24 | S1304 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments | |
| 25 | S1305 | Contributions or donations by the Government to international institutions | |
| 26 | S1306 | Remittance towards payment or refund of taxes. | |
| 27 | S1501 | Refunds or rebates or reduction in invoice value on account of exports | |
| 28 | S1503 | Payments by residents for international bidding |
regards
CA Rahul Makani
+919925043401
From: aaykarbhavan@yahoogroups.com
To: aaykarbhavan@yahoogroups.com
Date: Mon, 20 Jul 2015 13:24:15 +0530
Subject: [aaykarbhavan] Requirement of Form 15CA & 15CB for import Payment by Banks
Hi,
Can anyone explain me about requirement of Form 15CA & 15 CB.
Thanks & Regards,
Vikas Mishra
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Posted by: CA Rahul Makani <rahulmakani@hotmail.com>
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