E India CA

Professional Updates for Chartered Accountants

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Form 15CA & Form 15CB are required for Import Payments as well.

Section 195 (6) has been amended in the Finance Act 2015 and states that Form 15CA / 15CB needs to be necessarily filed for all remittances, whether chargeable to tax in India or not. All the assessees requested for submission of Form 15CA/CB for all outward cross border remittances including those against imports with effect from 1st June 2015.

In view of this amendment, would request to keep your records updated and arrange form 15CA/AB for all transactions from 1st June 2015. Relevant extracts from the act are shared below for ready reference.

Previously, section 195(6) of the Act provides that any person responsible for making payments to a non-resident of any sum chargeable under the IT Act will provide such information as may be prescribed. Pursuant to such provision form 15CA and 15CB are required to be furnished by payers.Such reporting requirements are now proposed to be extended even in respect of payments, which in the opinion of the payer, are not chargeable to tax under the IT Act.

Further, previously there was no penalty prescribed for non-furnishing of information or furnishing of incorrect information under section 195(6) of the IT Act (i.e. form 15CA and form 15CB). It is now proposed to provide a penalty of one lakh rupees in case of non-furnishing of information or furnishing of incorrect information under section 195(6) (i.e. form 15CA and form 15CB) of the Act. Such amendments are taken effect from June 1, 2015.

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