Question

9.2 What is the role of Form 15CA and 15CB with regard to certain type of foreign remittances?
It is an undertaking under the KYC rules of the RBI
O It is an undertaking by the remitter that remittance is as per the FEMA Act
O It is a CBDT prescribed format of undertaking - 15CA signed by remitter and supported by 1503
signed by a CA
It is an undertaking duly signed by remitter confirming that the remittance is as per PL​

Answer 1

Answer:

Form 15CA and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This new rule is effective from July 1, 2009 and shall apply to all remittances being made after July 1, 2009. The process that will have to be followed, before any remittance can be made, is as under—

Currently, remittances to non-residents are allowed by banks if the person making the remittance furnishes an undertaking, accompanied by a certificate from a Chartered Accountant (“CA”) certifying the rate for withholding tax as per section 195 of the Act. The banks then forward the certificates to the Reserve Bank of India (“RBI”), which in-turn forwards it to the Income tax department.

Section 195(6) requires the person responsible for making payment to a non-resident to furnish information relating to such payments in forms to be prescribed. The Central Board of Direct Taxes (“CBDT”) prescribed rule 37BB in the Income Tax Rules, 1962 (“the rules”) prescribing Form 15CA and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This rule is applicable to all remittances being made after July 1, 2009.