15-CB Certificate

While remitting money to foreign your banker may ask for a certificate in form 15 CB by a Chartered Accountant. 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 Act along with provisions of Double Tax Avoidance Agreements with the Recipient’s Residence Country.

What CA clarifies in form 15CB?

• Detail of payment made to non resident.
• TDS rate and deduction as per section 195 0f income tax act.
• Nature and purpose of remittance
• If any DTAA is applicable