Monday, March 4, 2024

RBI Codes for Cross-Border Transactions: Navigating Forms 15CA and 15CB Compliance

 The purpose of specifying codes in Forms 15CA and 15CB is to ensure proper tax compliance for cross-border transactions from India. These codes categorize the nature of the payments made to non-residents, allowing the Income Tax Department to assess tax liability and monitor foreign transactions effectively. The requirement for these codes stems from the need to prevent tax evasion and ensure that any taxes due on these transactions are correctly calculated and paid.

  • Form 15CA is a declaration by the remitter that tax has been paid on the payments that are being remitted to a non-resident. It requires detailed information about the payment, recipient, and nature of the transaction, for which specific codes are used to categorize the payment type.

  • Form 15CB is a certification by a Chartered Accountant that the provisions of the Income Tax Act and the Double Tax Avoidance Agreement (DTAA) have been complied with in making the payment to the non-resident. This form supports the declarations made in Form 15CA with a detailed analysis of the transaction, including the nature of the remittance and the tax liability.

The use of specific codes facilitates the standardized reporting and assessment of transactions, making it easier for both the remitters and the tax authorities to process and verify the compliance of these cross-border payments with Indian tax laws. This system also aids in the efficient handling of requests by banks, which play a crucial role in processing these international transactions, ensuring that they are in compliance with regulatory requirements.

The consolidated list covering both "P" (Payment Purposes) and "S" (Receipt Purposes) codes in a single table is as under

Main CodeSubcodeDescription
00 Capital Account
00P0001Repatriation of Indian investment abroad in equity
00P0002Repatriation of Indian investment abroad in debt securities
00P0003Repatriation of Indian investment abroad in branches
00P0004Repatriation of Indian investment abroad in subsidiaries and associates
00P0005Repatriation of Indian investment abroad in real estate
00P0006Foreign direct investment in India in equity
00P0007Foreign direct investment in India in debt securities
00P0008Foreign direct investment in India in real estate
00P0009Foreign portfolio investment in India in equity shares
00P0010Foreign portfolio investment in India in debt securities
00P0011Repayment of loans extended to Non-Residents
00P0012Loans from Non-Residents to India
00P0013Receipts o/a Non-Resident deposits
00P0015Loans & overdrafts by ADs on their own account
00P0016Purchase of a foreign currency against another foreign currency
00P0017Sale of intangible assets like patents, copyrights
00P0018Other capital receipts not included elsewhere
01 Exports (of Goods)
01P0101Value of export bills negotiated
01P0102Realisation of export bills
01P0103Advance receipts against export contracts
01P0104Receipts against export of goods not covered by the GR
01P0105Export bills sent on collection
01P0106Conversion of overdue export bills
01P0107Realisation of NPD export bills
02 Transportation
02P0201Receipts of surplus freight/passenger fare by Indian shipping companies
02P0202Purchases by Foreign shipping companies in India
02P0205Operational leasing (with crew) - Shipping
02P0207Receipts by Indian Airlines companies abroad
02P0208Receipt by Foreign Airlines in India
02P0211Operational leasing (with crew) - Airlines
02P0213Receipts on account of other transportation services
03 Travel
03P0301Purchases towards travel
03P0308FC surrendered by returning Indian tourists
04 Communication Service
04P0401Postal services
04P0402Courier services
04P0403Telecommunication services
04P0404Satellite services
05 Construction Service
05P0501Receipts for construction services projects in India
06 Insurance Service
06P0601Receipts of life insurance premium
06P0602Receipts of freight insurance
06P0603Other general insurance premium
06P0604Reinsurance premium
06P0605Auxiliary services (commission on insurance)
06P0606Settlement of claims
07 Financial Services
07P0701Financial intermediation except investment banking
07P0702Investment banking services
07P0703Auxiliary financial services
08 Computer & Information Services
08P0801Hardware consultancy
08P0802Software implementation/consultancy
08P0803Data base, data processing charges
08P0804Repair and maintenance of computer and software
08P0805News agency services
08P0806Other information services
09 Royalties & License Fees
09P0901Franchises services
09P0902Payment for use, through licensing arrangements
10 Other Business Services
10P1001Legal services
10P1002Accounting, auditing, bookkeeping, and tax consulting services
10P1003Business and management consultancy and public relations services
10P1004Advertising, trade fair, market research, and public opinion polling services
10P1005Research & Development services
10P1006Architectural, engineering, and other technical services
10P1007Agricultural, mining, and on-site processing services
10P1008Inward remittance for maintenance of offices in India
10P1009Distribution services
10P1010Environmental services
10P1011Other services not included elsewhere
11 Personal, Cultural & Recreational services
11P1101Audio-visual and related services
11P1102Personal, cultural services such as those related to museums, libraries, archives, and sporting activities
12 Government, not included elsewhere (G.n.i.e.)
12P1201Maintenance of foreign embassies in India
12P1203Maintenance of international institutions in India
13 Transfers
13P1301Inward remittance from Indians abroad
13P1302Personal gifts and donations
13P1303Donations to religious and charitable institutions abroad
13P1304Grants and donations to other governments and charitable institutions
13P1306Remittance towards payment / refund of taxes
14 Income
14P1401Compensation of employees
14P1402Remittance towards interest on Non-Resident deposits
14P1403Remittance towards interest on loans from Non-Residents
14P1404Remittance of interest on debt securities
14P1405Remittance towards interest payment by ADs on their own account
14P1406Repatriation of profits
14P1407Payment/repatriation of dividends
15 Others
15P1501Refunds / rebates / reductions on account of imports
15P1502Reversal of wrong entries
15P1503Refunds of amounts remitted for non-imports
15P1504Short shipment
15P1505Excess remittance made
15P1506Payment of fees to international institutions
15P1507Payment for miscellaneous purposes not included elsewhere
S00 Secondary Income
S00S0001Family maintenance and savings
S00S0002Family maintenance
S00S0004Personal gifts and donations
S00S0005Grants and donations to governments and charitable institutions
S01 Primary Income
S01S0101Compensation of employees
S01S0102Investment income in India
S01S0103Other primary income
S02 Secondary Income (cont'd)
S03 Financial Account
S03S0301Direct investment in India
S03S0302Portfolio investment in India
S03S0303Financial derivatives
S03S0304Other investment in India
S03S0305Reserve assets
S04 Capital Account
S04S0401Capital transfers
S04S0402Acquisition/disposal of non-produced, non-financial assets

This comprehensive list integrates both "P" and "S" series codes, facilitating a unified reference for transaction reporting.