Tds in absence of pan

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CA Mohit Goyal (Querist)
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02 January 2012 I have to make payment to Citi Bank, Singpore which is a wholy owned subsidiary of Citi Bank, New York.

Rate as per DTAA is 10%

However the Bank has given me PAN of Citi Bank, India.

Whether it is sufficient to have PAN of Citi Bank, India for compliance of Section 206AA or I need to deduct Tax @ 20%.

It is but obvious that every subsidiary of Citi Bank can't obtained PAN in every country of the world.

Please suggest from Client's point of view as the burden of TDS in on Client.

CA Navin Jain

CA Navin Jain (Expert)
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02 January 2012 Deduct the TDS @ 10% IN YOUR CASE,

HAS COMPANY PAID THE INTEREST ON BUYERS CREDIT?

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CA Mohit Goyal

CA Mohit Goyal (Querist)
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02 January 2012 Yes. Co. is paying Interest to Bank on Buyer's Credit.

CA Mohit Goyal

CA Mohit Goyal (Querist)
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02 January 2012 Yes. Co. is paying Interest to Bank on Buyer's Credit.

CA Mohit Goyal

CA Mohit Goyal (Querist)
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02 January 2012 Yes. Co. is paying Interest to Bank on Buyer's Credit.

CA Mohit Goyal

CA Mohit Goyal (Querist)
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02 January 2012 Yes. Co. is paying Interest to Bank on Buyer's Credit.

CA Navin Jain

CA Navin Jain (Expert)
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02 January 2012 Ok. Deduct the tds @10% on gross amount and obtained the form 15CB from CA

CA Mohit Goyal

CA Mohit Goyal (Querist)
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02 January 2012 But the councel is insisting on PAN of Citi Bank Singapore otherwise, he will apply 206AA and issue 15CB with a TDS of 20%.

CA Mohit Goyal

CA Mohit Goyal (Querist)
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02 January 2012 But the councel is insisting on PAN of Citi Bank Singapore otherwise, he will apply 206AA and issue 15CB with a TDS of 20%.

CA Navin Jain

CA Navin Jain (Expert)
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02 January 2012 in same case we also deduct tds @ 10%

CA Mohit Goyal

CA Mohit Goyal (Querist)
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03 January 2012 Thank You CA Navin Jain.

Any other expert opinion!!!!!!

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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03 January 2012 Here the issue is that Citibank Singapore and New Delhi Branch are the part of Citibank, New York and for the purpose of DTAA, India-USA and not India-Singapore DTAA shall be relevant.

THE PAN of Citibank India represents PAN of Citibank New York and that shall suffice the purpose of sec. 206AA however kindly take in writing from Citibank India that Citibank India was not involved in the loan transaction between Citibank Singapore and Indian party and no part of interest income payable to Citibank Singapore is attributable to Citibank India.

Anuj
+91-9810106211
femaquery@gmail.com

CA Mohit Goyal

CA Mohit Goyal (Querist)
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04 January 2012 Thanx a lot sir

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