20 March 2008
An Indian company, under collaboration agreement, makes payment of royalty to its collaborator, a foreign company at Japan. While deducting tds u/s 195, it deducted excess tds at 20% while the rate has been scaled down to 10% wef 01.04.07 under the DTAA. Queries in this regard are: 1) whether it can ajust the excess deduction of tds in its subsequent deduction of tds in the same year? 2) The Japan company is not filing return in India. In case, the Indian company files return for the Japan company as an agent of non resident (to get refund of the excess deduction),(a) whether new PAN has to be got for the non resident or can the Indian company file the return as an agent in its own PAN? (b) if new PAN is required, whether Form 49A has to be signed by the non resident or can it be signed and applied by the Indian company as agent (c)whether separate power of attorney will be required to file return on behalf of the non resident
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