IT Act Sec-195
Ravi Mishra
(Querist) 01 April 2010
This query is : Resolved
There was a news item in the Economic Times about Sec-195.
Is it necessary to give CA certificate every time an overseas outward remittance is made to NRI?
A V Vishal
(Expert) 01 April 2010
Presently remittances to non-residents are permitted if the person making the remittance furnishes an undertaking (addressed to the Assessing Officer) to the Reserve Bank of India/Authorized Dealer. This undertaking should be accompanied by a certificate from a Chartered Accountant.
The Finance Act 2008 had inserted a new provision whereby the person making payment to a non-resident was required to furnish information relating to the said payment in a prescribed format. The new format (Forms) was notified by the Central Board of Direct Taxes (CBDT) vide Notification No. 30/2009 dated 25 March 2009 and effective from 1 July 2009.
The CBDT has now issued a circular no.4/2009 dated 29 June 2009 laying down the revised procedure for furnishing the information
Revised procedure
The remitter has to obtain a certificate from a Chartered Accountant in Form No.15CB. The form is available for download from the website www.tin-nsdl.com.
Thereafter, the remitter has to access the above website to electronically upload the remittance details in Form No. 15CA (undertaking). The information in Form No. 15CA (undertaking) is to be filled using the information contained in Form No.15CB (certificate).
The remitter then needs to take a print of the Form No. 15CA (which will bear an acknowledgement number generated by the system) and sign it. This form can be signed by the person authorized to sign the return of income of the remitter or a person authorized by him in writing.
The dully signed Form 15CA (undertaking) and Form 15CB (certificate) needs to be submitted in duplicate to the Reserve Bank of India (RBI)/Authorized dealer who in turn will forward a copy to the Assessing Officer concerned.
A remitter who has obtained a certificate from the Assessing Officer regarding the rate at or amount on which the tax is to be deducted is not required to obtain a certificate from the Accountant in Form 15CB. However, he is required to furnish information in Form 15CA (undertaking) and submit it along with a copy of the certificate from the Assessing Officer as per the procedure mentioned above.
Information regarding the procedures, formats and standards for running of the scheme as well as instructions for filling up the forms is available at www.tin-nsdl.com. Further, the Form Nos.15CA and 15CB shall be available for upload and printout from this website.
