Form 15CA/15CB: paying a foreign vendor from India without TDS trouble

The certificate-and-declaration pair behind every foreign remittance — when each is needed, treaty rates, and the documents to keep ready.

Almost every payment from India to a foreign party runs into Forms 15CA and 15CB. They are simple once you know which applies — and a source of avoidable delay when you don't.

15CA vs 15CB — who files what

• Form 15CB is a Chartered Accountant's certificate on the remittance: nature of payment, taxability, treaty rate and TDS.
• Form 15CA is the remitter's declaration, filed online with the tax department, often referencing the 15CB.

The bank will not process the foreign remittance without the right combination.

When you can skip them

Not every remittance needs both. A specified list of payments (Rule 37BB) is exempt, and for small remittances up to ₹5 lakh in aggregate in a financial year, only Form 15CA (Part A) is needed — no 15CB. Above that, or for taxable payments, the CA certificate is generally required.

Treaty rates, TRC and Form 10F

To apply a DTAA rate (often lower than domestic TDS), the recipient typically needs a Tax Residency Certificate, Form 10F, and — where relevant — a No-PE declaration. Missing these forces the higher domestic rate and a refund chase later.

Common payments and their position

Software, royalties, technical services, dividends, interest and reimbursements each have their own characterisation — and characterisation drives the rate. Reimbursements and pure cost-recoveries are frequently over-taxed for want of documentation.

How Advisory Monks Consulting helps

Our Cross-Border Tax desk certifies 15CB, files 15CA, builds the treaty position with TRC/10F support, and turns routine remittances around in a couple of working days.

General information, not advice.