Is pan of foreign company necessary to deduct tds

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Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2014 Hi Freinds
Is PAN of a foreign company necessary to deduct TDS? What is the rate if they dont have a PAN?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 December 2014 Bosch Ltd. Vs. Income-tax Officer, International Taxation, Bangalore, 2012 it was concluded that Section 206AA overrides all other provisions of the Act as it starts with the non-absante clause "notwithstanding anything contained in the other provisions of the Act..." As regards the non-requirement of the Non-residents to apply for and obtain a PAN, held that the press release of the CBDT dated 20.01.2010 clarifies that the requirement of obtaining PAN No. will apply to all non-residents in respect of payments/remittances liable to TDS.

No PAN 20% or applicable TDS rate which ever is higher.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 December 2014 yes for foreign payment on which TDS provisions are applicable, if PAN is not there then tax required to be deducted at the rate of 20% under section 206AA

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