Form 145 Part B Explained
Learn when Form 145 Part B applies, how the AO certificate route works for taxable remittances above ₹5 lakh, and why Form 146 is not additionally required.
Form 145 Part B applies to a specific situation: the foreign remittance is taxable, the payment or aggregate exceeds ₹5 lakh during the tax year, and the taxpayer has obtained the required certificate or order from the Assessing Officer.
When Does Part B Apply?
Rule 220 provides for Part B where:
- The payment is chargeable under the Act;
- The payment or aggregate exceeds ₹5 lakh during the tax year; and
- A certificate or order has been obtained from the Assessing Officer under the relevant provision.
What Is the Role of the AO Certificate?
The Assessing Officer's certificate/order determines the applicable withholding position in the circumstances covered by the relevant provision.
Once the required certificate/order is available, the taxpayer can furnish the corresponding information through Part B.
Example
An Indian company has to make a foreign payment of ₹12 lakh.
The transaction is taxable and exceeds the ₹5 lakh threshold.
The company obtains the applicable AO certificate/order.
The filing route is then:
AO certificate/order → Form 145 Part B → Submission → Remittance process
Do You Need Form 146?
No.
This is one of the important changes under the new rules.
Where Part B has been furnished, the taxpayer does not also have to furnish Part C or obtain Form 146.
Why Is This Important?
It avoids duplicate certification.
A taxpayer should therefore not assume that every taxable foreign remittance above ₹5 lakh automatically requires a CA certificate.
There are separate routes under the rules.
Final Takeaway
Think of Part B as the Assessing Officer certificate route for qualifying taxable remittances above ₹5 lakh.
Above ₹5 lakh + AO certificate/order = Part B
And if Part B is used, Form 146 is not additionally required