Revised form notified for furnishing information on remittances made to non-residents

   

In supersession of an earlier notification[#_ftn1][1]dated August 5, 2013 issued by the Central Board of Direct Taxes (“CBDT”), the CBDT has further substituted the Income-tax Rules, 1962 (“Rules”)[#_ftn2][2]vide a recent notification[#_ftn3][3]dated September 02, 2013.

Key amendments made:

The recent notification prescribes revised format of Form 15CA in accordance with the substituted Rules with following key changes applicable from October 1, 2013:

· The payer is now required to furnish information specifically for following remittances made to non-resident (“NR”) or a foreign company (“F Co”):

- any interest; or

- salary; or

- any other sum chargeable to tax under the provisions of the Act.

· The amended form 15CA (which was earlier divided into three parts ie A, B and C as per the notification dated August 5, 2013) is now segregated into two parts –Part A (akin to Part A of earlier form) and Part B (akin to Part C of earlier form), and the payer is required to furnish details in each part (as applicable) depending upon the remittance made. In essence, the Part B of the earlier form has been repealed.

- Part A of the new form is similar to the earlier amended form, ie, payer is required to furnish the required information in Part A where the remittance made to a NR or a F Co does not exceed INR 50,000 per transaction and the aggregate of such remittance made during the financial year does not exceed INR 250,000.

- Part B of the new form covers remittances other than those specified in Part A, after obtaining a certificate from a Chartered Accountant in Form 15CB or a certificate from the Assessing Officer (“AO”) under section 197 of the Income-tax Act, 1961 (“Act”) or an order from the AO under section 195(2) or 195(3) of the Act.

· Specified list as per earlier notification dated August 5, 2013 is amended to exclude following items of payment:

- Payment for life insurance premium;

- Other general insurance premium;

- Payments on account of stevedoring, demurrage, port handling charges etc;

- Freight on imports - Airline companies;

- Booking of passages abroad – Shipping companies;

- Freight on exports - Shipping companies;

- Freight on imports - Shipping companies;

- Payment for surplus freight or passenger fare by foreign shipping companies operating in India;

- Imports by diplomatic missions;

- Payment towards imports-settlement of invoice; and

- Advance payment against imports.

· As required earlier, the new form would have to be filed electronically by the payer on the official website of the Income-tax department and thereafter a printout of the said form needs to be submitted to the authorized dealer as specified under Foreign Exchange Management Act, 1999. All this needs to be complied with before making the remittance