19 September 2014
We are paying to Foreign Company after deduction of withholding tax @ higher rate in absence of PAN. Foreign company demanding TDS certificate, but TIN System generates TDS certificates only in case of deductees/payees having a permanent account number (PAN). How can we issue TDS Certificate, has anyone right to demand Form 16/A without giving PAN?
19 September 2014
The only option available would be for the deductors/payers to issue manual TDS certificates in Form 16A evidencing the taxes deducted at source. With this, non-PAN deductees/payees should be able to claim credit for taxes withheld in India.
Thanks you very much for your reply sir, but The Central Board of Direct Taxes issued Circular No.3/2011 on May 13 according to which the deductors/payers are required to issue TDS certificate in Form 16A to the deductees/payees which is generated through the Tax Information Network (TIN) Central System. Still can we issue manual TDS?
19 September 2014
when foriegn authorities shall inquire with our tax dept then our tax dept will not approve and later the assessee shall be in trouble.