DTAA when no PAN No exists

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2010 Where the PAN of the payee is not available which rate of TDS to be deducted in respect of Foreig Remmitance, provided there is a DTAA with the country in which the payee is located at a lower rate?

kartik_somu

kartik_somu (Expert)
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14 April 2010 when no PAN no exists, then higher of 20 % or rate under Sec 195 will be applicable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 April 2010 AGREE

taxindiaconnect

taxindiaconnect (Expert)
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29 April 2010 The Provisions of section 206AA which has brought this change in the IT Act relating to PAN starts with a non obstente clause as following -

Nothwithstanding anything contained in any other provision of this Act ………..,

This mean the provision of section 206AA override all the provisions of the income tax Act 1961 including section 90 which provides that in case of a non resident the tax rates as per DTAA or IT Act which are more beneficial shall apply is also overridden. This in your query tax rate @ 20% shall apply.

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