A guide to certification - 15CB

Following are the suggested guide for the certification of remmittance

1) Name & Address of the Recipient & Beneficiary

2) Obtain Tax Residency Certificate issued by Tax Authorities of the country where the payee is located. If payee is a Branch, Tax Residency Certificate in respect of the Parent company

3) Status of the Recipient: Whether Individual, Partnership Firm, Incorporated Company, Trust, Association of Persons (Society etc), Bank or Government or a Government Body or any other status [Taxability and Rate of tax depends upon the Status of the payee]

4) Nature of Remittance as per agreement/document: Whether Royalty, Fees for Technical Services, Professional Fees, Business Income, Interest, Dividend, Management Fees, Reimbursement of Expenses or Other Income etc.

5) Ascertain applicable rate of TDS under applicable DTAA as well as under Domestic law.

6) In case the remittance is for “Net of Net of taxes” agreements: Whether tax payable has been grossed up? Provide computation.

7) Ascertain the correct classification of income: To do so, following details & documents are required-

a) Contract with the payee and other supporting documents, correspondence/emails, broachers etc.
b) Invoices and supporting vouchers. c) In case of Reimbursement of Expenses, supporting invoices /voucher
and other documentary proof

d) Any other document which may help in determining the nature of payment/ quantum of income.

8) In case the remittances is towards Royalty, FTS, Interest, Dividend, etc.:

Please Indicate-
a) Clause of DTAA under which remittance is covered with reasons
b) Rate of TDS under DTAA
c) If rate applied is lower than rate prescribed under DTAA, reasons
thereof
If the payment is in the nature of Fees for Technical Services, obtain
a Self Declaration of the Payee to the effect that its presence/
activities in India would not constitute a PE in India in terms of
Article 5 of the applicable Tax Treaty.

9) In case the remittances is for supply of articles or things (e.g. plant, machinery, equipment, etc.):

a) Whether recipient has any PE in India?
b) Whether, directly or indirectly, such activities of supply of
articles or things done through the PE?
c) Whether the sale of such articles or things has happened “in
India”?
If the payee has a PE in India, obtain Payee’s Self Declaration to the
effect that the transaction in respect of which the payment is being
made, is not directly or indirectly connected with the activities of
its PE in India.
d) If yes, the amount of income comprised in such remittance which is
liable to tax in India? Please provide basis/ computation of taxable
amount.
e) If no, give reasons
Obtain a Self Declaration from the Payee to the effect that it does
not have a Permanent Establishment (PE) in India in terms of Article 5
of the applicable Tax Treaty.

10) In case the remittance is on account of business income :
Pleaseindicate-

a. Whether such income is liable to tax in India?
b. If yes, the basis of arriving at the rate of TDS
c. If no, reasons thereof.

11) Date of Deduction of TDS, amount of TDS deducted, Exchange Rate on
the date of deduction of TDS to ascertain the correctness of amount of
TDS.

12) Photocopy of the receipted TDS Challan.

13) Particulars of the Bank (Name, Branch, Address, Account No.) thru
which the remittance is to be made