FORM 15CB

Chargeability to tax can be ascertained and certified by obtaining the certificate from a chartered accountant in form no. 15CB. This certificate has been prescribed under section 195(6) of the income tax Act and is an alternate channel of obtaining tax clearance apart from certificate from assessing officer.

Perusal of form 15CB makes it clear that there is no condition or exemption to obtain such certificate when the remittance is not chargeable to tax. In fact this form 15CB is the tax determination certificate where the issuer CA examines the remittance having regard to chargeability provisions under Section 5 and 9 of income tax along with provisions of double tax avoidance agreements with the recipient's residence country. Therefore in our opinion, it is advisable to obtain 15CB even in cases where 15CA is not mandated. Though there is no penal provision prescribed in the Act if such certificates in form 15CB and declaration in form 15CA from a CA. since non-resident taxation involves various complex issues and the consequences of no deduction are severe.

DOCUMENTS REQUIRED FOR FORM 15CB ARE AS MENTIONED BELOW:

A. Details of Remitter
1. Name of the Remitter
2. Address of the Remitter
3. PAN of the Remitter
4. Principal place of business of the Remitter
5. E-mail Address and phone NO. Of Remitter
6. Status of the Remitter (firm/company/other)

B. Details of the Remittance
1. Country to which Remittance is made
2. Currency in which Remittance is made
3. Amount of Remittance in India currency
4. Proposed date of Remittance
5. Nature of Remittance as per agreement (invoice copy to be asked from client)

C. Bank details of the Remitter
1. Name of bank of the Remitter
2. Name of branch of the bank
3. BSR code of the bank

D. Others
1. Father name of the signing person
2. Designation of the signing person

E. Form 1 of duty filled by the authorised person of the Remitter.

F. Tax residency certificate from the Remitter (tax registration of the country in which Remitter is registered)

G. Certification that the Remitter does not have any permanent establishment in India. This is mandatory if the income is a business income and not chargeable to tax as per DTAA if there is no P.E in India.