TDS FIling

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 Dear Sir,

We are filing FOrm No. 27E for ETDS Return for foreign remittances.

As per DTAA rules, if the person does not have a permanenet establishment in India, his income is not taxable in India and hence, TDS is not deductable from his payment.Hence, we are not deducting TDS and the payees also dont have PAN in India.

Now, in the ETDS return, in the space for PAN, if we write PANNOTAVBL, it is not accepting.Also, there are no other options to be written in place of PAN.

Kindly advise what can be written in PAN column so that the return gets accepted correctly.

CA Manish Agrawal

CA Manish Agrawal (Expert)
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12 April 2011 if the person does not have a permanent establishment in India, or Not Having It's Agent, And If He will not Comes within the Ambit of being Taxed in India(depending upon what remittance is Being Made). Neither Having a PAN No. nor being punished with TDS Deduction.. Is Good For the Assessee. but in Furtherance Is Seems to the IT authority that You have Committed a transaction on which TDS would have to be Deducted and NOT Been Deducted Than you as a Deductor will held be Liable for 20% Rate of TDS Thereon along with Interest and penalty Thereon(Amount Sought to Be Deducted). So Please Confirm The Nature of Payment. If The Person is Not Having Permanent Establishment in India and also NOT Having payment's Through his Agent How He Will Be Taxed.

Moreover, From Service Tax Point Of View, If Services are Rendered in India, They are to be Covered for Service Tax Ambit in Form of 'reverse Charge'. Here NOR/NRI does Not Matter But Rendering in India Matters.

-- CA Manish J. Agrawal