Archive · 26 Aug 2026
Suspicious Foreign Remittances Put Form 15CB Certifications Under Scrutiny
Form 15CB is a certificate used for certain payments sent from India to people or businesses in other countries.
It helps show how the payment should be taxed.
Tax authorities are checking some foreign payments that appear unusual.
For example, some payments did not match what the Indian companies said they did.
Some companies also could not be found at their declared addresses.
A CA who signs the certificate should not rely only on what the client says.
The CA should check documents, the business reason for the payment and the correct tax rules.
If the payment is unusually large or suspicious, the CA should investigate more carefully.
Keeping clear records can help show that the CA acted responsibly.
Tax authorities are examining about 394 entities and 36 professionals over suspicious outward remittances.
Some payments described as freight, software or consulting imports did not match the entities’ stated businesses.
Several firms reportedly were not operating from their declared addresses, while many Form 15CB certificates came from a small group of professionals.
Before issuing Form 15CB, CAs should verify commercial substance, supporting documents, tax characterisation, withholding tax and relevant treaty paperwork.
CAs can protect themselves by maintaining an audit trail, independently checking material facts and recording the reasoning behind each certification.
- Who
- Tax authorities, Indian entities making foreign remittances and the 36 professionals who issued the certificates are involved.
- What
- The authorities are examining suspicious outward remittances and the due diligence supporting Form 15CB certificates.
- Where
- The payments were sent overseas by Indian entities; the exercise includes 117 entities in land-border states.
- Why
- Some remittances appeared inconsistent with the entities’ businesses, documentation or operational profiles, raising questions about their commercial substance and tax treatment.
- Entities under examination
- About 394 entities
- Entities in land-border states
- 117
- Professionals examined
- 36
- Form 15CB purpose
- A certificate used in specified cases involving payments to non-residents to capture the tax implications of the remittance.
- Potential payment classifications
- Royalty, fees for technical services, interest, business income or another category under the Income-tax Act.
- Treaty documents
- A Tax Residency Certificate, Form 10F and other supporting declarations may be relevant when claiming Double Taxation Avoidance Agreement benefits.
- Recommended CA safeguards
- Maintain records of documents reviewed, client representations, the tax position adopted and the reasoning supporting the certification.