Trc
This query is : Resolved
09 December 2013
we are registered co. in Goa but wholly subsidiary owned by UK co. now our customer are asking us TRC certificate. i would like to know what is TRC and who should have TRC ie we from Goa or from UK
09 December 2013
hi,
Dear Freind
Trc means Transfer Residence Certificate.
u have to get TRC from uk. your tax liability will be computated as foreign company.
your customer is right u have to give them trc.
if u r not give them trc then your tax calculation will be done on bilateral method.
Dear Freind
Trc means Transfer Residence Certificate.
u have to get TRC from uk. your tax liability will be computated as foreign company.
your customer is right u have to give them trc.
if u r not give them trc then your tax calculation will be done on bilateral method.
09 December 2013
dear Sir,
what if don't have TRC and what will be the tax rate if TRC not given
what if don't have TRC and what will be the tax rate if TRC not given
02 August 2025
Got it! Here’s a clear explanation for you:
---
### What is TRC?
**TRC = Tax Residency Certificate**
* It’s an official document issued by the tax authorities of a country certifying that a person or company is a resident of that country for tax purposes.
* TRC is used to claim benefits under the Double Taxation Avoidance Agreement (DTAA) between two countries.
---
### Who should have the TRC — Goa company or UK company?
* Since your company is **registered in Goa (India)** but is a **subsidiary owned by a UK company**, the TRC you need to provide depends on:
* **Who is the taxpayer in the transaction?**
Usually, the company registered in Goa is considered an Indian resident for tax purposes and will get a TRC from Indian tax authorities.
* The UK parent company will have its own TRC from the UK tax authorities.
---
### Why does your customer want the TRC?
* To apply the correct **withholding tax rate** on payments made to your company.
* If you provide a valid TRC, your customer can apply the **reduced tax rate** as per DTAA between India and UK.
* If TRC is **not provided**, your customer might apply the **higher domestic withholding tax rate** or **tax at source without benefit of DTAA**.
---
### What if you don’t provide TRC?
* Without TRC, your customer will apply **tax withholding at the higher rate** prescribed under Indian domestic law (which can be up to 30% or more depending on payment type).
* This leads to **higher tax deduction at source** (TDS), which you can later claim as credit in your tax returns but it impacts cash flow.
---
### Summary:
| Scenario | Result |
| ---------------- | --------------------------------------------------- |
| TRC provided | Customer applies DTAA rate (usually lower TDS rate) |
| TRC not provided | Customer applies higher domestic TDS rate |
---
If your company is an Indian resident entity (registered and managed in India), you should get the **TRC from Indian tax authorities** (Income Tax Department, India).
Your UK parent company should have TRC from UK authorities.
---
Would you like help on how to apply for a TRC in India? Or details on the DTAA provisions between India and UK?
---
### What is TRC?
**TRC = Tax Residency Certificate**
* It’s an official document issued by the tax authorities of a country certifying that a person or company is a resident of that country for tax purposes.
* TRC is used to claim benefits under the Double Taxation Avoidance Agreement (DTAA) between two countries.
---
### Who should have the TRC — Goa company or UK company?
* Since your company is **registered in Goa (India)** but is a **subsidiary owned by a UK company**, the TRC you need to provide depends on:
* **Who is the taxpayer in the transaction?**
Usually, the company registered in Goa is considered an Indian resident for tax purposes and will get a TRC from Indian tax authorities.
* The UK parent company will have its own TRC from the UK tax authorities.
---
### Why does your customer want the TRC?
* To apply the correct **withholding tax rate** on payments made to your company.
* If you provide a valid TRC, your customer can apply the **reduced tax rate** as per DTAA between India and UK.
* If TRC is **not provided**, your customer might apply the **higher domestic withholding tax rate** or **tax at source without benefit of DTAA**.
---
### What if you don’t provide TRC?
* Without TRC, your customer will apply **tax withholding at the higher rate** prescribed under Indian domestic law (which can be up to 30% or more depending on payment type).
* This leads to **higher tax deduction at source** (TDS), which you can later claim as credit in your tax returns but it impacts cash flow.
---
### Summary:
| Scenario | Result |
| ---------------- | --------------------------------------------------- |
| TRC provided | Customer applies DTAA rate (usually lower TDS rate) |
| TRC not provided | Customer applies higher domestic TDS rate |
---
If your company is an Indian resident entity (registered and managed in India), you should get the **TRC from Indian tax authorities** (Income Tax Department, India).
Your UK parent company should have TRC from UK authorities.
---
Would you like help on how to apply for a TRC in India? Or details on the DTAA provisions between India and UK?
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