Friends
What is the significance of a Tax Residency Certificate (TRC) in relation to making a payment to a non resident and incidental withholding tax thereon under section 195 read with Tax Treaties or DTAA.
I mean if a Indian company has to make a payment to a foreign company and the DTAA rate is 10% for tax deduction at source how is a TRC related here. The deductee will give TRC to deductor ? if TRC is not given then DTAA provisions are not attracted ?
Regards,
CAclubindia
