08 January 2013
Payment to Foreigner against Roalty Commission Applicable for TDS Us-195 But the PAN No is not Available. Pls Suugest TDS Rates & Also Suggest is it Applicable for NON PAN Rate @ 20%.
Please look into the provisions of DTAA with rate of tax.. if it is lower than 20% then you can deduct at lower rate even if PAN is not available.. As the DTAA is a separate convention and taxation shall be governed by the provisions of dtaa if one opt for.
Read With Section 206AA, As per the amendments W.e.f 01/04/2010, on non-submission of PAN, Tax is to be deducted @ higher of prescribed rate or 20%.
Now, with the above amendment, in the absence of PAN, notwithstanding the fact that a lower rate is provided under the ITA or the tax treaty, tax is required to be withheld @ 20% in India.
CAclubindia
