15 CA & CB CERTIFICATE SERVICES
Form 15CA is a Declaration of Remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This is starting of an effective Information Processing System, which may be utilized by the Income tax Department to independently track the foreign remittances and their nature to determine tax liability. Authorised Dealers/ Banks are now becoming more vigilant in ensuring that they receive such Forms before remittance is affected.
The person making the payment (remitter) needs to obtain a certificate from a Chartered Accountant in Form 15CB. The format of Form 15CB has been prescribed by Central Board of Direct Taxes (CBDT). W.e.f. 01-06-2015 if any person makes any payment to a non-resident, any sum whether or not chargeable to income tax shall furnish form No. 15CA & 15CB. Earlier only income chargeable to income tax in India had to be reported only but now all payments are covered.
This means, any payment to non-resident (either by Bank Transfer / Credit Card / Paypal will now be covered). If the relevant form is not filed or incorrectly filed, then the penalty of Rs. 1,00,000 can be levied on the assessees.