DTAA benefits

DTAA Applicability: The non-resident is eligible for DTAA benefits upon furnishing a valid TRC and Form 10F. However, because a PE exists in India, income attributable to or effectively connected with the PE must be taxed as Business Profits (Article 7) on a net income basis in India rather than under lower gross withholding rates.

20% TDS Rate: A flat 20% withholding tax under Section 206AA does not automatically apply purely due to the absence of a PAN, provided the non-resident complies with Rule 37BC (furnishing TRC, TIN/tax ID, and contact details) or relies on DTAA protection overriding Section 206AA.