Form 15CA, Form 15CB, and Form 10F are essential documents under the Indian

Income Tax Act, primarily used in the context of making payments to non-residents
and to avail benefits under Double Taxation Avoidance Agreements (DTAA). Here's
an overview of each form and the compliance procedures:

Form 15CA:
Form 15CA is a declaration form used for making a remittance to a non-
resident or a foreign company. It is an online form and part of the compliance
procedures under Section 195 of the Income Tax Act. The purpose of Form 15CA is to
collect information about the nature of the payment and to ensure tax compliance.

Key Points:
Nature of Payment:
Form 15CA is applicable to various types of payments such as interest, royalties, fees
For technical services, dividends, and other payments to non residents.

Divided into Two Parts:

Form 15CA is divided into two parts - Part A and Part B. The requirement to
fill either part depends on the nature and amount of the remittance.
Part A:
Part A is for remittances not exceeding INR 5 lakhs. The remitter (person
making the payment) can fill and submit Part A without the need for a
Chartered Accountant's certificate (Form 15CB). However, certain types of
payments may still require Form 15CB even if they are below the INR 5 lakh limit.
Part B:
Part B is for remittances exceeding INR 5 lakhs and requires a Chartered Accountant's
certificate (Form 15CB). It involves more detailed reporting of the remittance.
Online Submission:
Both parts of Form 15CA are required to be submitted online through the Income Tax
Department's e-filing portal.
Form 15CB:
Form 15CB is a certificate issued by a Chartered Accountant (CA) certifying that the
provisions of the Income Tax Act and the DTAA, if applicable, have been complied
with in respect of the remittance. It is necessary for remittances exceeding INR 5
lakhs.

Key Points:
Chartered Accountant's Role:
A Chartered Accountant plays a crucial role in ensuring that the remittance is in
compliance with Indian tax laws and the relevant DTAA. They issue Form 15CB after
conducting due diligence.

Attachment to Form 15CA:

Form 15CB is typically attached to Form 15CA, and both are submitted together.

Verification of Tax Compliance:

The CA certifies that the remittance complies with applicable tax laws and the
provisions of the DTAA, ensuring that the correct rate of TDS is applied.
Form 10F:
Form 10F is a certificate of tax residency issued under Section 90(4) of the Income Tax
Act. It is used by a non-resident taxpayer to claim the benefit of a lower or nil rate of
TDS under the DTAA.

Key Points:

Eligibility:
Form 10F is applicable to non-resident taxpayers who are residents of a country with
which India has entered into a DTAA.

Tax Benefit under DTAA:

Form 10F is used to avail of the benefits provided by the DTAA, which can include
reduced withholding tax rates on various types of income.

Submission:
The non-resident taxpayer submits Form 10F to the Indian tax authorities through the
person responsible for deducting TDS (e.g., the payer of the income).

Certificate of Residence:
In many cases, the taxpayer is required to obtain a certificate of residence from the tax
authorities in their home country as evidence of their tax residency.
Compliance Procedure:

Determine the Nature of Payment:

Identify the type of payment being made and verify the tax residency of the recipient.

Form 15CA and 15CB (If Applicable):

For remittances exceeding INR 5 lakhs, obtain Form 15CB from a Chartered Accountant.
Fill out Form 15CA (Part A or Part B) and ensure online submission along with Form 15CB.

Form 10F (If Applicable):

Non-resident taxpayers should submit Form 10F to claim DTAA benefits for reduced
TDS rates.

TDS Deduction and Payment:

Deduct the appropriate TDS amount and deposit it with the tax authorities within the
specified due dates.

Record Keeping:
Maintain records of the transaction, including invoices, certificates, and TDS
certificates.

Reporting:
File TDS returns with the tax authorities, provide information on the foreign payments,
and report compliance with Form 15CA and Form 15CB.

Communication and Documentation:

Maintain clear communication with foreign recipients to ensure they provide
necessary documents and information in a timely manner.

Tax Expert Consultation:

Seek guidance from tax professionals to navigate the complexities of foreign
payments and tax compliance to ensure proper adherence to Indian tax laws and DTAA
provisions