ED Arrests CA for issuing Form 15 CB to some entities allegedly involved in Money Laundering [Read Order]

The Enforcement Directorate (ED) has arrested the CA for issuing Form 15 CB to some entities allegedly involved in Money Laundering.

The arrest of a Chartered Accountant for issuing Form 15 CB for some entities which are not even main accused is completely unwarranted.

The Advocate Abhishek Garg and Advocate Apurva M.Gokhle contended that while issuing Form 15CB a chartered accountant is not required to step into the shoes of the investigation agency to ascertain if the same is for any money laundering activities, for he only ascertains the tax to be deducted while making the remittance. Catching hold of a CA in such a manner when the agency is unable to find any of the main accused is unfortunate.

Form 15CB is required for payments made to Non-Resident, not being a Company, or to a Foreign Company which are taxable and if the payment exceeds ₹5 Lakh. Form 15CB is an event-based form and is required for each remittance that satisfies the condition laid. In form 15CB, a CA certifies the details of the payment, TDS rate, TDS deduction, and other details of nature and purpose of remittance. In other words, Form 15CB is the Tax Determination Certificate in which the CA examines a remittance with regard to chargeability provisions. This form can be submitted both in online and offline mode and no time limit is prescribed for filing the Form.

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