More Relaxed form 15CA and 15CB compliances w.e.f 01.04.2016
No more form 15CA and 15CB required for import payments
Recently CBDT amended the rules requiring form 15ca and 15cb for foreign remittance in view of reducing the burden of compliances.
The amended Rules will become applicable from 01.04.2016.
The significant changes under the amended Rules 37BB are:
- No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not requiring RBI approval under its Liberalised Remmittace Scheme (LRS)
- Further the list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.
- A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh. (which was earlier 2,50,000/-)
For more information refer Notification No. G.S.R. 978(E) dated 16th December, 2015
Form 15CA & 15CB exemption list:-
|Sl. No.||Purpose code as per RBI||Nature of payment|
|1||S0001||Indian investment abroad-in equity capital (shares)|
|2||S0002||Indian investment abroad-in debt securities|
|3||S0003||Indian investment abroad-in branches and wholly owned subsidiaries|
|4||S0004||Indian investment abroad-in subsidiaries and associates|
|5||S0005||Indian investment abroad-in real estate|
|6||S0011||Loans extended to Non-Residents|
|7||S0202||Payment for operating expenses of Indian shipping companies operating abroad.|
|8||S0208||Operating expenses of Indian Airlines companies operating abroad|
|9||S0212||Booking of passages abroad – Airlines companies|
|10||S0301||Remittance towards business travel.|
|11||S0302||Travel under basic travel quota (BTQ)|
|12||S0303||Travel for pilgrimage|
|13||S0304||Travel for medical treatment|
|14||S0305||Travel for education (including fees, hostel expenses etc.)|
|16||S0501||Construction of projects abroad by Indian companies including import of goods at project site|
|17||S0602||Freight insurance – relating to import and export of goods|
|18||S1011||Payments for maintenance of offices abroad|
|19||S1201||Maintenance of Indian embassies abroad|
|20||S1202||Remittances by foreign embassies in India|
|21||S1301||Remittance by non-residents towards family maintenance and savings|
|22||S1302||Remittance towards personal gifts and donations|
|23||S1303||Remittance towards donations to religious and charitable institutions abroad|
|24||S1304||Remittance towards grants and donations to other Governments and charitable institutions established by the Governments|
|25||S1305||Contributions or donations by the Government to international institutions|
|26||S1306||Remittance towards payment or refund of taxes|
|27||S1501||Refunds or rebates or reduction in invoice value on account of exports|
|28||S1503||Payments by residents for international bidding. ]|
Five more newbie transactions added to exemption list w.e.f 01.04.16:-
|29||S0101||Advance payment against imports
(a big relief to importers since it will reduce hindrances for expediting on making payment to their overseas suppliers)
|30||S0102||Payment towards imports-settlement of invoice|
|31||S0103||Imports by diplomatic missions|
|33||S0190||Imports below Rs.5,00,000/- (For use by ECD offices)|
What is Liberalised Remittance Scheme (LRS) ?
Under the Liberalised Remittance Scheme, (hereinafter referred to as the Scheme/LRS) resident individuals are allowed to remit upto USD 250,000 per financial year (April-March) for any permitted current or capital account transactions or a combination of both without approval of RBI.
Individuals can avail of foreign exchange facility for the following purposes within the limit of USD 250,000 only. Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India.
- Private visits to any country (except Nepal and Bhutan).
- Gift or donation.
- Going abroad for employment.
- Maintenance of close relatives abroad.
- Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up.
- Expenses in connection with medical treatment abroad.
- Studies abroad.
- Any other current account transaction.
However, for item numbers as mentioned at (iv)[ emigration], (vii)[expenses in connection with medical treatment abroad] and (viii)[studies abroad], individuals may avail of exchange facility for an amount in excess of the overall limit prescribed under the LRS, if it is so required by a country of emigration, medical institute offering treatment or the university respectively.
The permissible capital account transactions by an individual under LRS are:
i) opening of foreign currency account abroad with a bank;
ii) purchase of property abroad;
iii) making investments abroad;
iv) setting up Wholly owned subsidiaries and Joint Ventures abroad;
v) extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 2013.
For more info refer RBI circular no 106