Form 15CA & 15CB Certification & Foreign Remittance Compliance — What to Get Right Before You Start
Every payment made by an Indian resident to a non-resident or foreign company — for services, royalties, consultancy, import of goods on CIF terms, software licenses, dividends, loan repayments, or any other purpose — is a potential tax event, governed by Section 195 of the Income-tax Act 1961 for remittances up to 31 March 2026 and by Section 393 of the Income-tax Act 2025 from 1 April 2026. The Form 15CA and Form 15CB compliance framework — replaced from 1 April 2026 by Form 145 (the remitter's declaration) and Form 146 (the accountant's certificate) under Rule 220 of the Income-tax Rules 2026 — exists to ensure the government can track these remittances and that TDS is correctly handled before the money leaves India. At PNPC Global, we handle Form 15CA/15CB for businesses and individuals across every remittance type — from routine vendor payments to complex DTAA-reliant software royalties and interest payments on foreign loans.
What This Actually Covers
Under Section 195 of the Income Tax Act 1961, any person responsible for paying any sum to a non-resident (or to a foreign company) that is chargeable to income tax in India is required to deduct TDS at the applicable rate before remitting. Form 15CA is the remitter's own declaration, filed online on the income-tax e-filing portal before the remittance, setting out the nature and taxability of the remittance. Form 15CB is a certificate issued by a Chartered Accountant (not self-declared) confirming the nature of the payment, the applicable income tax rate, the relevant DTAA provisions, and whether TDS has been correctly deducted. For remittances from 1 April 2026 these roles are carried by Form 145 and Form 146 under the Income-tax Act 2025; the structure described below carries over, but confirm the current form parts and exemptions.
For the full scope, current process and what PNPC includes, see the dedicated Form 15CA & 15CB Certification & Foreign Remittance Compliance service page.
Signs This Applies to You
- Payment to a non-resident that is chargeable to income tax in India — for goods (taxable element), services, royalties, technical fees, interest, rent, dividend, or any other income
- Remittance to a foreign company — including payment to a parent, holding, or group company outside India for inter-company services, royalties, or interest on loans
- Software license fees, subscription fees, SaaS payments to foreign vendors — where the payment may constitute royalty under Section 9(1)(vi) (1961 Act; the corresponding 2025 Act provision applies from tax year 2026-27) or under the applicable DTAA
- Payment to a non-resident individual for consultancy, professional services, or technical services rendered even if the work was performed outside India
When It Isn't the Right Fit
- Payment for import of goods covered by a specific exemption (import payments on the specified exempt list) — PNPC verifies on a case-by-case basis
- Remittances by an individual under the RBI's Liberalised Remittance Scheme (for example personal travel, education of a dependant or medical treatment) — these need no Form 15CA or 15CB (and, from 1 April 2026, no Form 145) at all; Part A of the form is instead for taxable remittances that stay within the prescribed Part A limit for the year
- Payments that are specifically not chargeable to income tax in India, or that fall within the exempt list (Rule 37BB up to 31 March 2026; Rule 220 of the Income-tax Rules 2026 thereafter) — for example, certain shipping freight payments to non-resident shipping companies where Section 172 applies separately
Common Questions
Do I need Form 15CA and 15CB for every payment I make to a foreign vendor?
No — not for every payment. Under the 1961 rules, Rule 37BB exempts LRS remittances by individuals and a specified list of 33 categories of remittance from 15CA/15CB. From 1 April 2026, Rule 220 of the Income-tax Rules 2026 exempts LRS remittances by individuals, remittances by IFSC units and remittances of specified RBI purpose codes from Form 145. PNPC determines the applicable form at the start of each remittance transaction.
What is the difference between Form 15CA and Form 15CB — and who prepares each?
Form 15CB is the Chartered Accountant's certificate — issued by a practising CA who certifies, based on review of the transaction documents, the nature of remittance, applicable income tax section, TDS rate (domestic or treaty), and taxability. It is filed by the CA on their own IT portal login and carries a UDIN (Unique Document Identification Number). Form 15CA is the remitter's own declaration filed on the remitter's IT portal login, referencing the CA's 15CB (for Part C). The remitter is responsible for 15CA; the CA is responsible for 15CB. Both must be consistent — 15CA Part C simply incorporates the 15CB facts. PNPC prepares both: we file 15CB and help the remitter prepare and file 15CA Part C. For remittances from 1 April 2026 the same roles apply to Form 146 (the accountant's certificate) and Part C of Form 145.
My company pays a SaaS subscription to a foreign company. Do I need 15CA and 15CB?
Possibly — the answer depends on whether the payment constitutes 'royalty' (or fees for technical services) under Indian tax law and the applicable DTAA. In Engineering Analysis Centre of Excellence v CIT (March 2021), the Supreme Court held that payments by Indian end-users and distributors to non-resident suppliers for the use or resale of software under end-user licence or distribution agreements are not royalty under the applicable DTAAs, because no copyright is transferred, so no TDS under Section 195 arises on those payments. SaaS and other cloud arrangements are not automatically covered by that ruling — the treatment still turns on the contract and the treaty wording. Whether the SaaS payment triggers TDS depends on the specific DTAA with the vendor's country, whether the vendor has a PE in India, and whether Form 10F and TRC have been provided. A blanket 'it's just a subscription, not taxable' approach creates significant risk.
Where PNPC Fits In
Speak directly with a PNPC Chartered Accountant before your next foreign remittance. Not a portal. Not a bank officer. A practising CA with cross-border expertise across India and UAE — who reviews every remittance, not just signs the form.
PNPC Global has advised Chennai, Bangalore and Hyderabad businesses since 1986. Explore the full Income Tax practice for related services, or go straight to the Form 15CA & 15CB Certification & Foreign Remittance Compliance page for specifics.
Specific rates, fees, thresholds and deadlines are set by the relevant authority and change over time — this article deliberately does not quote figures that could go stale. Confirm current numbers directly with PNPC or the official source before you act.