As more and more businesses expand globally, remittances have become an integral part of the international financial system. A remittance is simply a transfer of funds from one country to another. In order to ensure that these transfers are made in a legally compliant manner, the Indian government requires a Form 15CB to be filed by the remitter. This form is essentially a certificate issued by a Chartered Accountant (CA) stating that the remittance is in accordance with the provisions of the Income Tax Act.

The nature of remittance as per the agreement or document is an important aspect that is taken into consideration while preparing Form 15CB. The remittance may be for various purposes such as payment towards import/export of goods, fees for technical services, interest payments, dividends, royalty payments, and so on. Each type of remittance has its own set of rules and regulations that must be followed.

For instance, in the case of import/export of goods, the remittance is allowed only if the goods are not deemed to be restricted under any law. Similarly, in the case of fees for technical services, the remittance can be made only if the services have been rendered outside India.

In cases where the remittance is for interest or dividend payments, the nature of the remittance must be in accordance with the terms of the agreement or document. This means that the remittance must be made in the manner specified in the agreement or document. For example, if the agreement specifies that the interest or dividend payments must be made in a particular currency, then the remittance must be made in that currency.

It is important to note that the CA issuing Form 15CB must take into consideration the nature of the remittance as per the agreement or document while certifying the form. Any discrepancies between the terms of the agreement and the remittance made can result in legal complications.

In conclusion, the nature of remittance as per the agreement or document in Form 15CB is a crucial aspect that must be taken into consideration while remitting funds from one country to another. It is important for businesses to ensure that they are compliant with the provisions of the Income Tax Act and that they follow the rules and regulations set out for each type of remittance. By doing so, they can avoid legal complications and ensure smooth and efficient international transactions.