Making cross-border payments and unsure about the compliance process? Forms 15CA and 15CB are crucial for ensuring smooth transactions while adhering to tax regulations. Wondering how they work and when they're required? Dive into our detailed guide to understand everything about these forms and their role in international payments!
Confused about cross-border form fill ups? As your business expands across different nations, it is important for you to know how the details of ensuring all cross-border payments are compliant with the different rules and regulations set by the country. As the best chartered accountant firms in Gurgaon and tax consultant in Gurgaon, we know about every step required when filling up such important forms. Rest assured as our team guides you through the process. Continue reading this blog to learn more about Form 15CA and 15CB for cross-border payments:
Form 15CA is a type of official declaration submitted to government authorities when a cross-border payment is made from an Indian to a non-Indian. This mandatory form must be submitted to the income tax department as stated under the Income Tax Act. If you need consultation on the taxes applicable to your remittance, then feel free to reach out to the top income tax consultant Gurgaon. This form helps the government to keep track of all cross-border transactions taking place and to ensure tax compliances are being met. The steps on how to submit the form will be mentioned below.
Form 15CB is a type of certificate issued by a Chartered Accountant. If you need a Chartered Accountant, then contact DSRV India right away! Unlike Form 15CA, it is not an official declaration. It is to ensure that all of the tax compliances in relation to the Income Tax Act and Double Taxation Avoidance Agreement (DTAA) are being followed. It helps with verifying all processes undertaken during the cross-border transactions between two entities belonging to India and any other foreign country respectively.
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Depending on the type of remittance, there are four types of forms. Choose the most suitable form according to your situation:
When filing both forms, you need to keep certain documentation ready. Here are the required documents to fill out Form 15CA and 15CB:
Certificate of Form 15CB attested by a Chartered Accountant. This needs to include details of the Chartered Accountant’s name and membership name alongside other details of the remittance.
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The online procedure of form submission is quite simple. It involves:
Log into the official portal of the income tax department at www.incometax.gov.in .
Add your Chartered Accountant within the “Authorised Partners” tab by clicking on “My Chartered Accountant (CA) from the drop-down menu. Add your Chartered Account by clicking on the “Add CA” option. Fill in the required membership number of your CA after the following and click on “Add” once you have filled out the number. After your Chartered Accountant confirms the request, we can proceed with the next step.
After completing the prior steps, go to the “E-file” tab, followed by the options “Income Tax Forms” and “File Income Tax Forms”. After clicking on this option, you will be redirected to the “File Income Tax Forms” page. Click on the “Others” option and choose the Form No. 15CA. You can alternatively look for the option by looking it up in the search box.
After reaching the “Instructions” page, read every detail carefully before clicking on “Let’s Get Started”. Select the “Mode of Submission” online and fill in the Financial Year below in the drop-down menu. Now, move on to the next part of the process by selecting either of the four parts of the form.
For this form, the first two steps are the same. Let us understand each step carefully:
You will be required to go to the official website and log in to www.incometax.gov.in.
You will need to add your chartered accountant. After your chartered accountant successfully confirms the request, we can proceed to fill up the form 15CB.
Go to the “E-file” Tab, followed by the options “Income Tax Forms” and “File Income Tax Forms” again. Similarly, after clicking on this option, you will be redirected to the “File Income Tax Forms” page. Choose the Form No. 15CB this time and click on “File Now”. There will be different options given: online, offline/bulk upload and manual. Select the online option and fill in the details. After filling in the details, upload the Digitally Signed Certificates of the Chartered Accountant and submit the form. Once submitted, it can be viewed and downloaded under the E-file Tab again.
On the official website, there is an option to submit the form through offline/bulk mode. The steps are simple. After you finish filling up the essential details, you can access the form from the “Downloads” section on the Income Tax Forms page.
Prepare individual XML files for the Remitter, Remittee and the Chartered Accountant (CA). After all the files are prepared, submit them in bulk/offline mode by zipping the files into one folder. You also need to submit a Digital Signature Certificate (DSC) by the CA along with this.
After submission, you will receive a token number to check the status of your submission. You can check it on the “View Form Offline/Bulk” option available in the “e-File” tab. If the status fails, then you will be required to re-upload all documents with the necessary corrections.
Read More: How Tax On Foreign Remittance In India Impacts You?
It is now clear that according to the type of remittance, you will be required to fill out the forms. By knowing all steps and keeping your documentation prepared beforehand, you will be able to fill out the forms with ease.
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