Form 15CA & 15CB Certification & Foreign Remittance Compliance

No — not for every payment. Rule 37BB exempts 33 specified categories of remittances from 15CA/15CB. Additionally, if the total remittance to a non-resident does not exceed ₹5 lakh during the financial year and the payment falls under Part A (self-declared categories), only Form 15CA Part A is needed, without a CA-issued 15CB. For remittances above ₹5 lakh that are not covered by the Rule 37BB exempt list — which includes most business-to-business payments for services, royalties, and technical fees — both 15CA Part C and 15CB are mandatory. PNPC determines the applicable form at the start of each remittance transaction.

Form 15CB is the Chartered Accountant's certificate — issued by a practising CA who certifies, based on review of the transaction documents, the nature of remittance, applicable income tax section, TDS rate (domestic or treaty), and taxability. It is filed by the CA on their own IT portal login and carries a UDIN (Unique Document Identification Number). Form 15CA is the remitter's own declaration filed on the remitter's IT portal login, referencing the CA's 15CB (for Part C). The remitter is responsible for 15CA; the CA is responsible for 15CB. Both must be consistent — 15CA Part C simply incorporates the 15CB facts. PNPC prepares both: we file 15CB and help the remitter prepare and file 15CA Part C.

Possibly yes — and the answer depends on whether the payment constitutes 'royalty' under Indian tax law and the applicable DTAA. The Supreme Court in the Landmark Engineering case and the Delhi HC in Blackberry India among others have confirmed that payments for the right to use software (even off-the-shelf) may be royalties under Section 9(1)(vi) of the Income Tax Act. However, several DTAAs define royalty more narrowly — the India-USA DTAA, for example, does not include consideration for software as royalty. Whether the SaaS payment triggers TDS depends on the specific DTAA with the vendor's country, whether the vendor has a PE in India, and whether Form 10F and TRC have been provided. A blanket 'it's just a subscription, not taxable' approach creates significant risk.

A Tax Residency Certificate is a document issued by the tax authority of the non-resident's home country certifying that the person or company is a resident in that country for tax purposes in the relevant period. Under Section 90(4) of the Income Tax Act, a non-resident cannot claim DTAA benefits unless they furnish a TRC. Under Section 90(5), the TRC must contain specified information: the name of the person, name of the country, tax identification number, residential status, period of validity, and address. If the TRC does not contain all these particulars, Form 10F (self-declaration by the non-resident, filed on the IT portal) supplements the missing information. Without TRC + Form 10F where required, the CA cannot certify the DTAA rate in Form 15CB, and the domestic Act rate applies.

Section 271-I of the Income Tax Act: failure to furnish Form 15CA before remittance, or furnishing incorrect information in 15CA, attracts a penalty of ₹1,00,000 per default. The assessing officer has the power to levy this — it is not automatic like Section 234F, but it is routinely imposed in cases flagged by banks or during assessments. Additionally, making a remittance to a non-resident without complying with Section 195 TDS (deduction and deposit) attracts being treated as an 'assessee in default' — liable for the uncollected TDS, interest under Section 201(1A), and potential prosecution under Section 276B.

Yes. Interest paid to a foreign lender on an External Commercial Borrowing (ECB) is income arising in India under Section 9(1)(v) — it is taxable in India in the hands of the non-resident lender. TDS under Section 195 applies on each interest payment. The rate depends on whether a DTAA applies and whether the foreign lender has provided TRC and Form 10F. Under the domestic Act, interest TDS rate is 20% plus surcharge and cess. Under many DTAAs (India-Netherlands, India-UK, India-Japan, for example), the rate is reduced to 10% or lower. Form 15CB certifies the applicable rate; Form 15CA Part C is filed before each interest remittance. Principal repayment alone — without any interest — may not require 15CA/15CB if it constitutes return of capital not chargeable to Indian tax.

Under Section 9(1)(vii) of the Income Tax Act, fees for technical services are deemed to accrue or arise in India if the services are utilised in India — regardless of where the services are performed. 'Fees for technical services' means any consideration for the rendering of managerial, technical, or consultancy services. If an Indian company engages a foreign law firm or consulting firm and utilises those services in India (even though the lawyers are in London or New York), the fees are taxable in India in the hands of the foreign payee. TDS under Section 195, Form 15CB, and 15CA Part C are required. The applicable rate is the domestic Act rate or the applicable DTAA rate — many treaties have a lower FTS rate (10% under India-UK DTAA, for example) or exclude certain services from FTS definition.

Form 15CB can be issued by any Chartered Accountant holding a valid Certificate of Practice. It does not need to be the client company's statutory auditor or tax consultant. However, the CA must have reviewed the actual documents — the agreement, invoice, TRC, Form 10F, and the applicable DTAA article — before certifying. The certificate is a professional opinion on taxability, not a clerical exercise. PNPC issues Form 15CB only after reviewing all relevant transaction documents, regardless of whether PNPC is the client's existing CA. We also handle one-time 15CB issuances for companies whose regular CA does not specialise in cross-border transactions.

Pure trade payments for import of goods are generally not subject to TDS under Section 195 because the goods seller is a non-resident who has no Indian-source income from the transaction — the income arises in their home country from a sale of goods. Rule 37BB includes payment for import of goods within the schedule of remittances where only Form 15CA Part A (self-declaration) may be required — or no form if covered by specific exemptions. However: if the import contract is on CIF terms (Cost, Insurance, Freight) and freight and insurance are paid separately to non-resident carriers or insurers, those components are separately analysed. Also, where the goods vendor provides embedded technical services or where royalty is embedded in the purchase price (common in licensed technology imports), the analysis changes. PNPC reviews import agreements specifically for embedded service or royalty elements.

Form 10F is a self-declaration form required under Rule 21AB when a non-resident furnishes a TRC that does not contain all the information required by Section 90(5). It requires the non-resident to declare: name, address, country of tax residence, tax identification number, period of residency, and status (individual, company, etc.). From 16 July 2022, the CBDT mandated that Form 10F must be filed by the non-resident themselves on the Indian IT e-Filing portal — they must create an account on incometax.gov.in using their passport and foreign email address. This was a major operational change. The non-resident cannot authorise the Indian payer or the Indian CA to file Form 10F on their behalf. PNPC guides foreign clients and their Indian counterparts through this process.

Yes. Intercompany payments between an Indian subsidiary and its UAE parent — for management fees, shared services, royalties, IT support, or loans — are subject to Section 195 analysis and Form 15CA/15CB requirements, exactly like payments to unrelated foreign vendors. The India-UAE DTAA (Double Taxation Avoidance Agreement) applies: rates for dividends (10%), interest (12.5%), royalties and fees for technical services (Article 13: 10% or 12.5% depending on type), and business profits (only taxable in UAE unless PE in India). Transfer pricing documentation is a separate obligation — the transaction must be at arm's length and documented per Section 92 rules. PNPC's Dubai office and India team handle both the 15CA/15CB compliance and the transfer pricing documentation for India-UAE group structures.

PNPC needs a minimum of 3–5 working days from receipt of complete documents to issue Form 15CB and guide 15CA filing. Documents needed: signed agreement or invoice, payee's TRC (if DTAA rate is sought), Form 10F filed by payee (if required), and remitter's entity details. Urgent cases can sometimes be completed faster, but expedited turnaround is not guaranteed because 15CB requires actual document review — the CA's professional liability does not permit rushing the analysis. For recurring remittances to the same payee (monthly service fees, regular royalties), PNPC sets up a standard template that reduces turnaround on subsequent payments after the first detailed review.

Once a Form 15CB is filed on the IT portal and a UDIN is generated, the certificate is on permanent record with both the ICAI UDIN portal and the IT department. It cannot be 'cancelled' in the technical sense. If the underlying transaction is modified — the amount changes, the payee changes, or the nature of payment is reclassified — a new Form 15CB must be issued for the revised transaction. The original 15CB acknowledgement number cannot be reused for a different transaction. Similarly, a 15CA that was filed and acknowledged cannot be cancelled if the remittance is subsequently not made — PNPC advises on the correct procedure, which may involve filing a correction in the portal or recording the non-remittance. Banks, however, will not process a remittance against a 15CB that does not match the transaction details.