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Section 195 , dtaa ,pan not available

1641 views 1 replies

sidhigiri

Ipcc

236 Points Posted on 12 July 2019

Dear Sir/Madam, Can u please let me know what is the solution for income tax tds return (form 27Q), u/s 195, pan error / short deduction or pan error ?? As the foreign party does not have any PAN Nmuber, PANNOTAVBL is quoted and rate of tds quoted in tds return is 10% (as per DTAA), and is so what is the solution for rectifying it ?? Please guide me

Replies (1)

Saket Mishra

367 Points Posted on 12 July 2019

Read Rule 37BC if you r making payment to NR for-
-Interest
-Royalty
-Fees for technical services or
-on account of trf of capital asset
and such NR is not having pan then provision of sec 206AA shall not apply ie; higher rate of deduction,
accordingly the information mention in Rule 37BC required to be mention in form 27Q, and you not required to deduct tax at higher rate...

Crux- If your r paying the amt to NR specified in rule 37BC and NR not having pan the also you r nt required to deduct tax at higher rate u/s 206AA but the payment to NR is other the in the nature which is mention in the said rule the u required to deduct tax at higher rate...