Is Form 15CB Required for Payment for Purchases or Imports?
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A common question faced by Indian importers is whether a Chartered Accountant’s certificate in Form 15CB is required before making payment to an overseas supplier for purchase or import of goods.
For an ordinary import-of-goods payment, Form 15CB was generally not required where the payment was not chargeable to tax in India and fell within the prescribed import-remittance categories.
Earlier form Form 15CA and 15CB were used, but From 1 April 2026, Form 15CB has been replaced by Form 146, while Form 15CA has been replaced by Form 145 under the Income-tax Act, 2025.
Importantly, the new Income-tax Rules, 2026 continue to specifically recognise certain import payments as excluded remittances where the underlying sum is not chargeable to tax in India.
Form 15CB – Earlier Position up to 31 March 2026
Under the earlier framework, Form 15CB was a Chartered Accountant’s certificate obtained in specified cases involving payments to non-residents or foreign companies.
Where a payment was chargeable to tax in India, exceeded the prescribed ₹5 lakh aggregate threshold and the remitter was following the CA-certificate route, Form 15CB was obtained before filing Part C of Form 15CA.
However, Form 15CB was not required merely because money was being paid to a foreign supplier.
Rule 37BB specifically included the following import-related purpose codes among the prescribed categories:
- S0101 – Advance payment against imports
- S0102 – Payment towards imports – settlement of invoice
- S0103 – Imports by diplomatic missions
- S0104 – Intermediary trade
These categories were relevant to the exemption from Form 15CA/15CB reporting where the underlying sum was not chargeable to tax in India.
What Changed from 1 April 2026?
From 1 April 2026, the applicable forms are:
Form 15CA → Form 145
Form 15CB → Form 146
The Income Tax Department confirms that Forms 145 and 146 apply to remittances made on or after 1 April 2026.
The basic principle remains important:
Taxability of the payment must first be determined.
Form 146 is a CA certificate used where the payment to a non-resident/foreign company is taxable, the payment or aggregate payments exceed ₹5 lakh during the tax year, and the taxpayer is filing Part C of Form 145 rather than relying on an Assessing Officer certificate.
Is Form 146 Required for Import of Goods?
Generally, no – for a pure non-taxable import-of-goods payment falling within the prescribed import purpose codes.
Rule 220(3) of the Income-tax Rules, 2026 provides that no information is required in Form 145 for specified payments that are not chargeable to tax in India.
The prescribed list specifically includes:
| RBI Purpose Code | Nature of payment |
|---|---|
| S0101 | Advance payment against imports |
| S0102 | Payment towards import – settlement of invoice |
| S0103 | Imports by diplomatic missions |
| S0104 | Intermediary trade |
| S0190 | Imports below ₹5 lakh – for specified ECD use |
These codes appear expressly in notified Rule 220.
Accordingly, where an Indian business is simply paying a foreign supplier for purchase/import of goods, the sum is not chargeable to tax in India and the remittance falls within the prescribed import purpose code, ordinarily:
Form 145 is not required → therefore Form 146 is also not required.
But Every Overseas Purchase Payment Is Not Automatically Exempt
This distinction is very important.
A transaction described commercially as a “purchase” may contain other elements that need a separate tax analysis.
For example:
| Nature of payment | Position to examine |
|---|---|
| Pure import of goods | Generally covered by import-payment exemption where not chargeable |
| Advance payment for imported goods | S0101 may apply |
| Settlement of import invoice | S0102 may apply |
| Installation/commissioning charges | Separate taxability analysis required |
| Technical services | May be taxable depending upon domestic law/DTAA |
| Royalty/licence payment | Separate withholding-tax analysis required |
| Software/licence bundled with goods | Facts and character of payment must be examined |
| Consultancy with purchase of equipment | Service component should be separately analysed |
| Interest for delayed payment | Interest component may have separate tax consequences |
Therefore, the description “purchase” on the invoice is not by itself sufficient.
The underlying character of the payment must be determined.
Example 1 – Pure Import of Machinery
An Indian company purchases machinery from an overseas manufacturer for ₹40 lakh.
The foreign supplier merely sells and ships the machinery to India and there is no separate royalty, technical-service or other taxable component.
If the payment is not chargeable to tax in India and is reported under the applicable import purpose code such as S0102, Rule 220(3) covers the payment in the specified list.
Result: Ordinarily, neither Form 145 nor Form 146 would be required.
Example 2 – Advance Payment for Imported Goods
An Indian company remits an advance to a foreign supplier before shipment of goods.
Purpose code S0101 – Advance payment against imports is expressly included in the specified list under Rule 220(3).
Where the advance represents only consideration for import of goods and is not chargeable to tax in India:
Form 145/Form 146 would ordinarily not be required.
Example 3 – Machinery Plus Technical Services
Suppose the overseas supplier charges:
- Machinery – ₹30 lakh
- Installation and technical support – ₹8 lakh
The entire remittance should not automatically be treated as a simple import of goods.
The technical-service component should be examined separately for taxability under the Income-tax law and the applicable Double Taxation Avoidance Agreement (DTAA).
If the relevant component is chargeable to tax in India and the prescribed threshold/conditions are satisfied, Form 146 may become relevant for the taxable remittance. Form 146 specifically requires the Chartered Accountant to examine domestic-law taxability, DTAA taxability and TDS.
When Is Form 146 Required?
Under the current framework, Form 146 is generally relevant where:
- payment is being made to a non-resident or foreign company;
- the payment is chargeable to tax in India;
- payment or aggregate payments exceed ₹5 lakh during the tax year;
- the remitter has not adopted the applicable Assessing Officer certificate route; and
- Part C of Form 145 is therefore applicable.
The CA first files Form 146, after which its acknowledgement is used for Part C of Form 145.
So:
Taxable payment > ₹5 lakh + CA route → Form 146 → Form 145 Part C
When Is Form 146 Not Required?
Form 146 is generally not required merely because:
- the recipient is outside India;
- payment is being made in foreign currency;
- the invoice amount exceeds ₹5 lakh;
- payment is made through an Authorised Dealer bank; or
- the transaction is an import.
The key issue is whether the payment is chargeable to tax in India and whether the conditions for Form 146 are satisfied. Rule 220 expressly separates taxable payments from non-taxable remittances and provides specific exclusions.
Documents to Examine for an Import Remittance
Before determining Form 145/Form 146 applicability, it is useful to review:
- foreign supplier invoice;
- purchase order/agreement;
- description of goods;
- import documentation;
- bill of entry, where available;
- RBI purpose code;
- bank remittance details;
- separate installation/service agreements, if any;
- royalty/software/licence provisions, if any;
- Tax Residency Certificate where treaty relief becomes relevant; and
- correspondence explaining the nature of the transaction.
Do Banks Still Ask for a CA Certificate for Import Payments?
A bank may request documents for its FEMA, KYC, transaction verification or internal compliance requirements.
However, a bank’s documentary requirement should not be confused with the statutory question of whether Form 145/Form 146 is legally required under Rule 220.
Therefore, where an import payment falls within the specified non-taxable import-remittance category but a bank asks for additional confirmation, the nature of the bank’s requirement should first be clarified.
We should delete the existing paragraph referring to RBI Circular No. 3 dated 19 July 2007 as though it makes Form 15CB necessary for import purchases. The present wording is confusing and no longer represents the current statutory framework.
Form 15CB vs Form 146 for Purchase Payments – Quick Summary
| Situation | Form requirement |
|---|---|
| Pure non-taxable import of goods under S0101/S0102 | Generally no Form 145/146 |
| Taxable payment up to ₹5 lakh | Form 145 Part A; no Form 146 |
| Taxable payment above ₹5 lakh + AO certificate | Form 145 Part B; no Form 146 |
| Taxable payment above ₹5 lakh + CA certificate route | Form 146 + Form 145 Part C |
| Non-taxable payment not covered by Rule 220(3) exemption | Form 145 Part D; no Form 146 |
This structure follows notified Rule 220 and the Income Tax Department’s Form 145/146 guidance.
Form 145 and Form 146 Assistance for Import Payments
For remittances made on or after 1 April 2026, businesses should first determine whether an overseas payment represents a pure import of goods or contains a taxable service, royalty, interest or other component.
For assistance with taxability review, Form 145 applicability and CA certification in Form 146, see our Form 145 and Form 146 Filing and CA Certification Services in India.
Prepared By: EzyBiz India Consulting LLP – Chartered Accountants & Tax Advisors
Last Updated: August 2026
Disclaimer: This article is intended for general informational purposes only. The tax treatment of an overseas purchase depends upon the actual nature of the transaction, contractual terms, taxability under Indian law, applicable DTAA, RBI/FEMA requirements and the facts of each case. Professional advice should be obtained before processing a foreign remittance.
ealer that don’t even ask for filing Form 15CB from taxpayers.
