206AA and DTAA
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 June 2011
The income as per The Act is taxable @ 10% and as per DTAA the income is not taxable then whichever is beneficial i.e. 0% tax will be considered..but if the assessee fails to furnish PAN will the income be charged @ 20% or it will not be taxed at all as per DTAA.. kindly provide some case laws for the same..thank you..
08 June 2011
1) Mr. S.Sairam in his article (see article section of caclubindia) observes that 206AA prevails over 90(2).
2) Mr. Venkat Rao Marella in his article (see article section of caclubidia) concludes that 206AA prevails over 90(2).
3) Dr. Vinod.K. Singhania in his article in SIRC Newsletter (July 2010 issue) says 206AA cannot override the provisions of DTAA. If a tax treaty provides a tax rate which is lower than 20 %, tax will be deducted at the lower rate,even if PAN is not furnished by the recipient.
Unless CBDT comes out with a notification/ amendment in law at the earliest, the issue will lead to prolonged litigation.
No case laws has been reported so far.
2) Mr. Venkat Rao Marella in his article (see article section of caclubidia) concludes that 206AA prevails over 90(2).
3) Dr. Vinod.K. Singhania in his article in SIRC Newsletter (July 2010 issue) says 206AA cannot override the provisions of DTAA. If a tax treaty provides a tax rate which is lower than 20 %, tax will be deducted at the lower rate,even if PAN is not furnished by the recipient.
Unless CBDT comes out with a notification/ amendment in law at the earliest, the issue will lead to prolonged litigation.
No case laws has been reported so far.
Message likes :
1 times
15 July 2013
Section 206AA Overrides Section 90(2).
So Tax is to be Deducted @20%.
So Tax is to be Deducted @20%.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Tds on commission charges
- GST ITC REVERSE
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Applicability of GST on Salary Reimbursement Component
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- New GST registration for new place of business.
- Regarding Applicability of Tax Audit u/s 44AB
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
ARTICLESHIP
18 September 2026
Industrial Trainee
Twenty Point Nine Five Ventures Private Limited
Noida
CA Inter
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
22 September 2026
Account Assistant
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
View Details
CCI
Pro
CAclubindia
