Form 15CA is a Remitter Declaration and is used as an instrument to collect data on payments that are taxable in the hands of non-resident recipients. This is the beginning of an efficient information processing system that the Income Tax Department can use to monitor overseas remittances separately and their nature to determine tax liability. Authorized Dealers / Banks are now becoming more vigilant in ensuring that such Forms are received by them prior to the remittance, since now, in accordance with the revised Rule 37BB, they are required to file Form 15CA received from the remitter with an income tax authority for any proceedings under the Income Tax Act.

Perusal of Form 15CB makes it clear that when the remittance is not taxable, there is no condition or exemption to receive such certificate. In fact, this Form 15CB is the Certificate of Tax Determination in which the issuer CA examines the remittance on the basis of the provisions of Sections 5 and 9 of the Income Tax Act, together with provisions of the Double Tax Avoidance Agreements with the recipient’s country of residence. Therefore, in my view, even in instances where 15CA is not mandated, it is advisable to acquire 15CB. While there is no penal provision laid down in the Act if such certificates are not received in Form 15CB and Declaration in Form 15CA, it is in Assessee’s interest to have a tax determination from a CA in Form 15CB, as non-resident taxation includes numerous complicated problems and the implications of non-deduction are serious. HSAG can assist you with both forms hassle free.