Every payment made to a non-resident may be taxable in India depending on:

• The Income Tax Act,
• India’s Double Taxation Avoidance Agreements (DTAAs), and
• The nature of services/products being paid for.

Just like certain domestic payments require TDS (Tax Deducted at Source), foreign remittances too may attract TDS if the income is deemed taxable in India.

Forms 15CA and 15CB are the mechanism through which the government ensures:

• Tax has been deducted when required
• Incorrect or untaxed outflows don’t slip through
• Clear records exist for all foreign transactions

Think of them as a compliance checkpoint before your money leaves India.

Form 15CB – The Chartered Accountant’s Certificate

Form 15CB is issued by a practicing Chartered Accountant and acts as the technical verification of your remittance. It is required for most taxable foreign payments and whenever the bank insists on expert certification.

A CA checks and certifies the following:

Nature of Remittance

Is it royalty? Professional fees? Import of services? Maintenance? Education payment?

Each category has distinct tax rules.

Taxability Under Indian Law

Not all foreign payments are taxable.

The CA determines whether this particular payment falls within the taxable scope of Indian law.

DTAA Applicability

India has treaties with 90+ countries.

These treaties help avoid double taxation and may allow for reduced TDS or no tax at all.

TDS Rate

The CA certifies:

• Applicable TDS rate under the Act
• Any DTAA benefit
• Whether tax must be deducted, and if yes, how much

Compliance With FEMA and RBI Guidelines

Every foreign payment must comply with the Foreign Exchange Management Act.

Verification of Supporting Documents

Such as:

• Invoice
• Agreement
• Tax Residency Certificate (TRC)
• No-PE declarations
• Bank details

Once Form 15CB is issued (where applicable), the remitter files Form 15CA online on the Income Tax portal.
Form 15CA contains:

• Remitter’s details
• Recipient’s details
• Country, currency, and amount of remittance
• Purpose of remittance using standard RBI codes
• TDS deducted, if any
• Details of Form 15CB certificate

• Typical cases that require 15CB and 15CA:
• Professional or technical fees to foreign companies
• Online software subscription payments
• Commission payments
• Royalty or licensing fees
• Outsourcing payments (IT, consulting, freelancing)
• Purchase of foreign services

Cases that often need only 15CA (no 15CB):

• Gift or family maintenance
• Overseas education expenses
• Foreign travel
• Import of goods (bank rarely demands 15CB)