03 February 2010
As per the press release of CBDT no.402/92/2006-mc (04 of 2010) dated 20th Jan 2010, TDS needs to be deducted at higher rate of 20% for non-furnishing of PAN, my query is why is non-residents need to get PAN in india when they dont have business in India, Is the circular of CBDT legally valid?? Is that possible?
03 February 2010
Payments made to Non-Residents are governed by Double Taxation Avoidance Agreement (DTAA) entered by Government of India with Other countries. For non-residents not having permanent establishments in India, there is no need to obtain a PAN. The rates will be as governed by the DTAA agreements with the respective countries The circular is relevant to the other TDS provisions like 194C, 194J etc.
CAclubindia
