What are Form 15CA and 15CB?

15CA is an online declaration the remitter files before paying a non-resident; 15CB is a CA's certificate on the remittance's nature, taxability and withholding, required for many taxable remittances above the threshold.

Generally for taxable foreign remittances above ₹5 lakh in a financial year (unless the payment is on the specified exempt list). Below that, a simpler part of 15CA usually suffices. Confirm per payment with your CA.

Will my bank remit without 15CA/15CB?

No — banks require the applicable 15CA (and 15CB where needed) before processing a foreign remittance.

Does paying a foreign vendor also trigger TDS?

Usually yes — TDS under Section 195 applies to taxable payments to non-residents, subject to DTAA relief, and 15CB certifies that position.

ComplianceStackTDS & income tax

15CA/15CB: What You Must File Before Paying a Foreign Vendor

the compliance control room24 July 2026 · ComplianceStack

Before remitting money abroad above the threshold, you generally need Form 15CA (an online declaration) and often Form 15CB (a CA certificate). Banks won't process the transfer without them. Here's how it works.

Before your company remits money to a non-resident — a foreign contractor, SaaS vendor, parent company, or consultant — you generally need to file Form 15CA (an online declaration of the payment and its taxability), and for many payments a Form 15CB (a CA's certificate on the nature and tax of the remittance). Your bank will not process the transfer without them. It's a routine but easy-to-miss step every startup paying overseas vendors hits.

What 15CA and 15CB are

Form 15CA — an online declaration you (the remitter) file on the income-tax portal, stating the remittance details and whether tax was deducted. It's the self-declaration that the payment's tax position has been considered.
Form 15CB — a certificate from a Chartered Accountant on the nature of the remittance, its taxability, and the TDS/withholding applied (including any DTAA relief). It's required for many taxable remittances above the threshold, and 15CA references it.

The interplay: for a taxable foreign payment above the limit, the CA issues 15CB, then you file 15CA citing it, then the bank remits.

When you need them

The requirement depends on the amount and the taxability of the remittance:

Small remittances (up to ₹5 lakh in a financial year) generally need only a simpler part of 15CA.
Larger taxable remittances typically need 15CB (CA certificate) + the corresponding part of 15CA.
Certain specified payments (a notified list of the nature of low-risk transactions) are exempt from 15CA/15CB.

Because the exact part of 15CA and whether 15CB is needed turns on the amount and taxability, this is a case to confirm with your CA per remittance.

Why it connects to TDS and FEMA

Paying a non-resident usually brings in TDS under Section 195 (withholding on the payment, subject to DTAA relief) — which is exactly what 15CB certifies. And if the foreign payment relates to an investment or transfer, it may also touch FEMA reporting. So a single overseas payment can trigger TDS, 15CA/15CB, and (for capital transactions) FEMA — worth mapping before you pay. Note too that importing a service can attract GST under reverse charge.

The startup trap

Startups paying a US SaaS tool, an offshore developer, or a foreign parent often discover 15CA/15CB only when the bank blocks the transfer — delaying a vendor payment at a bad moment. Building it into your foreign-payment process (get the 15CB early, file 15CA, then remit) avoids the scramble.

Track your cross-border payment obligations

Foreign payments quietly stack obligations — TDS, 15CA/15CB, sometimes GST-RCM and FEMA. ComplianceStack helps you track them so an overseas payment doesn't get stuck or under-complied. Get your free compliance health check.

FAQs

What are Form 15CA and 15CB?: 15CA is an online declaration the remitter files before paying a non-resident; 15CB is a CA's certificate on the remittance's nature, taxability and withholding, required for many taxable remittances above the threshold.
When do I need 15CB?: Generally for taxable foreign remittances above ₹5 lakh in a financial year (unless the payment is on the specified exempt list). Below that, a simpler part of 15CA usually suffices. Confirm per payment with your CA.
Will my bank remit without 15CA/15CB?: No — banks require the applicable 15CA (and 15CB where needed) before processing a foreign remittance.
Does paying a foreign vendor also trigger TDS?: Usually yes — TDS under Section 195 applies to taxable payments to non-residents, subject to DTAA relief, and 15CB certifies that position.

This article is general information, not tax, legal or accounting advice. Statutory timelines and thresholds change by notification — confirm applicability and interpretation with your CA, CS, or lawyer before acting.

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