Quick Summary
The Central Board of Direct Taxes (CBDT) has released Draft Form No. 146, proposing a comprehensive accountant's certificate for payments made to non-residents or foreign companies under the Income-tax Act. The draft form is aimed at strengthening tax compliance, ensuring correct tax deduction at so
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
FAQ :
Draft Form No. 146 is a proposed certificate to be issued by a Chartered Accountant, detailing the taxability, applicable TDS rate, and DTAA position for payments made by Indian residents to non-residents or foreign companies.
Indian residents making payments to non-residents (individuals or entities) or foreign companies will require this certificate from a Chartered Accountant.
The form collects detailed information about the remitter, the non-resident remittee, the nature and amount of the remittance, its taxability under Indian law, and any applicable DTAA relief.
The form requires specific disclosures if DTAA benefits are claimed, including confirmation of the Tax Residency Certificate (TRC), the relevant treaty article, and the treaty-based TDS rate for different income categories.
The primary purpose is to enhance transparency in foreign remittances, ensure accuracy in Tax Deducted at Source (TDS) compliance, and promote consistent application of DTAA provisions, thereby reducing potential disputes.
Taxpayers and professionals should review their current foreign remittance processes, align their documentation with the requirements of Form 146, ensure they have necessary documents like TRCs, and prepare for the new CA certification responsibilities.
CAclubindia
