The Central Board of Direct Taxes (CBDT) has recently amended the Income-tax
Rules, 1962 (the Rules) dealing with the compliance requirements in relation to
withholding tax provisions in India. Included among various amendments, is the
introduction of new Rule 37BB of the Rules dealing with the compliance
requirements for making remittance to a non resident / foreign company. The
new Rule 37BB shall be effective from 1st July 2009. It would therefore apply to all
remittances made on or after 1st July, 2009.
The new Rule 37BB provides that the person making a remittance to a nonresident
/ foreign company is required to obtain a certificate from a Chartered
Accountant in Form 15CB. In addition to most of the details that are presently
required to be certified, the said form is different from the existing C.A. Certificate
issued under section 195 of the Income‐tax Act, in the following aspects:‐
| Particulars |
Existing Form |
New Form |
| BSR Code of the remitter’s
bank to be specified |
No |
Yes |
| Date of the remittance |
Proposed
month /date to be specified |
Proposed date of the
remittance to be
specified |
Nature of the remittance as per
agreement/ document to be
specified |
No |
Yes |
| Reference to “Nil / Lower withholding
tax” order procured
from the tax department along
with the details to be specified |
No |
Yes |
| Serial No. of the Certificate |
Not required |
Required |
Further, the person remitting to a non‐resident / foreign company is required to
furnish information in Form 15CA to the Income tax department. The information
in Form 15CA shall be furnished electronically to the website designated by the
Income‐tax department and thereafter a signed print‐out of the said form is
required to be submitted to the Income‐tax department prior to remitting the
payment. Form 15CA requires additional information to be furnished by the
remitter as compared to earlier undertaking especially, in respect of the following: |
