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
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Internship/Academic shown in Salary Pay Slip of a Doctor
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- Liable to deduct tds and 44ADA
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
